Chardan China Acquisition is easily the most successful of the recent blank check offerings. The company, which went public on March 17, 2004 and raised gross proceeds totaling $24,150,000, recently completed the acquisition of State Harvest Holdings Limited, a Chinese company engaged in the production and sale of agricultural seeds. The company has changed its name to Origin Agritech Limited. The Origin securities now trade on Nasdaq under the symbols SEED, SEEDW, and SEEDU.
The Chardan China units, which consisted of one share of common stock and warrants to purchase two additional shares of common stock at $5.00 per share, were originally priced at $6.00 per unit. Yesterday, the common shares and warrants closed at $12.65 and $7.60, respectively, giving the units, which closed at $27.80, a value of $27.85.
Yesterday, the company announced that it was forcing the conversion of 8,050,000 warrants that were sold in the offering. If you assume that all of the warrant holders exercise their option to purchase stock at $5.00 per share, the company will raise $40,250,000.
Origin Agritech Limited Sets Redemption Date of Warrants
Monday December 5, 4:05 pm ET
BEIJING & SAN DIEGO--(BUSINESS WIRE)--Dec. 5, 2005--Origin Agritech Limited (NASDAQ: SEED; SEEDW and SEEDU) ("Origin") announced that it is sending out redemption notices to all of the holders of its issued and its outstanding callable common stock purchase warrants. The final redemption date for the warrants will be January 9, 2006. After the redemption date, holders of warrants who have not exercised them will be paid $.01 per warrant, and the warrant will be extinguished.
Origin has the right to call these warrants at a time when the common shares have traded at greater then $8.50 for at least 20 of 30 trading days prior to the notice of redemption being sent to warrant holders. The closing price of the shares on December 2, 2005 was $11.76.
The common stock purchase warrants were originally issued by Chardan China Acquisition Corp. in March 2004. As a result of the merger of Chardan into Origin Agritech, the warrants are now exercisable into common shares of Origin Agritech.
Prior to January 9, 2006, holders of the warrants may exercise them for common shares by sending the warrants together with payment in full of $5.00 per warrant to the company's stock transfer agent, Continental Stock Transfer & Trust Company.
<snip>
biz.yahoo.com |
