Chardan 2008 China Acquisition Corp. (“Chardan” or the “Company”) (NASDAQ: CACAU) announced today that it has closed its initial public offering of 6,875,000 units. Each unit consists of one ordinary share and one warrant that entitles the holder to purchase one ordinary share at $5.00 per share. The units were sold at an offering price of $8.00 per unit, generating gross proceeds to the Company of $55,000,000.
The Company consummated a private placement of 2,000,000 warrants at a purchase price of $0.50 per warrant to certain of its officers, directors and initial shareholders on August 11, 2008. The initial public offering and the private placement generated gross proceeds to the Company in the aggregate of $56,000,000. The Company intends to use the net proceeds from the offering and the private placement to acquire, through a merger, share exchange, contractual control arrangement or other similar business combination, one or more assets or operating businesses in the People’s Republic of China. The Company’s efforts in identifying a prospective target business will not be limited to a particular industry in China.
Brean Murray, Carret & Co, Maxim Group LLC and Roth Capital Partners acted as representatives of the underwriters. The offering is being made only by means of a prospectus, copies of which may be obtained from Brean Murray, Carret & Co., LLC, 570 Lexington Avenue, New York, NY 10022, Attention: Prospectus Department; telephone: (212) 702-6521, or by e-mail at huangm@bmur.com, or Maxim Group LLC, 405 Lexington Avenue, New York, NY 10174 Attention: Prospectus Department, telephone: (800) 724-0761, or Roth Capital Partners, LLC, 24 Corporate Plaza Drive, Newport Beach, CA 92660, by e-mail at rothecm@roth.com.
In addition, the Company announced today that commencing on August 25, 2008, it expects that the holders of the Company’s units may elect to trade the ordinary shares and warrants included in the Company’s units separately. Those units not separated will continue to trade on the Nasdaq Capital Market under the symbol CACAU, and each of the ordinary shares and warrants will trade on the Nasdaq Capital Market under the symbols CACA and CACAW, respectively.
Richardson & Patel LLP acted as special U.S. securities counsel to the Company, Maples & Calder acted as BVI counsel to the Company and Ellenoff Grossman & Schole LLP acted as counsel to the underwriters.
A registration statement relating to these securities was declared effective by the Securities and Exchange Commission on August 11, 2008. This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Chardan 2008 China Acquisition Corp.
Chardan 2008 China Acquisition Corp. is a newly organized blank check company formed for the purpose of acquiring, through merger, share exchange, contractual control arrangement or other similar business combination, one or more assets or operating businesses in the People’s Republic of China.
Forward Looking Statements — Safe Harbor
This press release may contain forward-looking statements within the meaning of the federal securities laws. These forward-looking statements inherently involve risks and uncertainties that are detailed in the Company’s prospectus and other filings with the Securities and Exchange Commission and, therefore, actual results could differ materially from those projected in the forward-looking statements. The Company assumes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Contacts:
Kerry Propper, CEO
646-465-9016
