China Opportunity Acquisition Corp. completed its IPO on March 21, 2007, selling 6,900,000 units, including 900,000 units sold through the exercise of the over-allotment option, at $6.00 per unit. The gross proceeds totaled $41.4 million. Exclusive of the over-allotment option, the gross proceeds of $36 million were in line with the amount that the company was looking to raise when it filed its initial S-1 on September 29, 2006. A total of $39,717,000, equal to $5.76 per common share, has been placed into an escrow account. This balance includes $414,000 deferred by the underwriters, which will be paid when the company completes an acquisition, and $1,360,000 from the sale of warrants 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 $250,000 of interest earned on the trust fund balance can be used to fund expenses related to investigating and selecting a target business and our 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 March 20, 2008. The warrants will expire at 5:00 p.m., New York City time, on March 19, 2011, or earlier upon redemption.
China Opportunity Acquisition Corp. is going to focus on acquiring “an operating business that has its principal operations located in the People’s Republic of China. Our efforts to identify a prospective target business will not be limited to a particular industry.”
The securities are listed on the OTC Bulletin Board. The units (CHNQU.OB) closed at $6.60 today. The common shares (CHNQ.OB) and warrants (CHNQW.OB) closed at $5.47 and $.60, respectively.
The final prospectus:
sec.gov |
