China Discovery Acquisition Corporation completed its IPO on June 21, 2007, selling 5,000,000 units at $6.00 per unit. The gross proceeds totaled $30 million, which was in line with the amount that the company was looking to raise when it filed its initial S-1 on February 8, 2007. A total of $29,075,000, equal to $5.82 per common share, has been placed into an escrow account. This balance includes $300,000 deferred by the underwriters, which will be paid when the company completes an acquisition, and $1,250,000 from the sale of warrants and units to certain of the insiders. In the event that the company is liquidated, neither the underwriter nor the insiders will receive any of the funds placed into the escrow account.
Up to $1,050,000 of interest earned on the trust fund balance can be used to fund expenses related to investigating and selecting a target business and other working capital requirements.
Each unit consists of one share of common stock and warrants to purchase two additional shares at $5.00 per share.
Warrant terms: Each warrant will become exercisable on the later of the completion of a business combination with a target business and June 18, 2008. The warrants will expire at 5:00 p.m., New York City time, on June 17, 2011, or earlier upon redemption.
China Discovery Acquisition Corporation is going to focus its acquisition efforts on acquiring an operating business in the People’s Republic of China.
The securities are listed on the OTC Bulletin Board. The units (CADQU.OB) closed at $6.45 yesterday. The common shares (CADQ.OB) and warrants (CADQW.OB) are not yet trading.
The final prospectus:
sec.gov |
