China Holdings Acquisition Corp. completed its IPO on November 16, 2007, selling 12,000,000 units at $10.00 per unit. The gross proceeds totaled $120 million, in line with the amount that the company was looking to raise when it filed its initial S-1 on August 3, 2007. A total of $117,600,000, equal to $9.80 per common share, has been placed into an escrow account. This balance includes $4,020,000 deferred by the underwriters, which will be paid when the company completes an acquisition, and $2,750,000 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 $3 million 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 a warrant to purchase one additional share at $7.50 per share.
Warrant terms: Each warrant will become exercisable on the later of the completion of a business combination with a target business and November 16, 2008. The warrants will expire at 5:00 p.m., New York City time, on November 16, 2012, or earlier upon redemption.
China Holdings Acquisition Corp. is going to be focusing its acquisition efforts on acquiring an operating entity in China.
The securities are listed on the American Stock Exchange. The units (HOL-U) closed Friday at $10.02. The common shares (HOL) and warrants (HOL-WT) are not yet trading.
The final prospectus: sec.gov |
