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Exhbiti
99.1
China
Armco Metals, Inc. Announces $10 Million Private Placement
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Wednesday
April 21, 2010
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San
Mateo, California --(BUSINESS WIRE)—China Armco Metals, Inc. (the “Company”)
(AMEX:CNAM - News) today announced
it entered into a definitive agreement on April 20, 2010, to sell common stock
to institutional investors in a private placement for aggregate gross proceeds
of approximately $10 million. The closing of the offering is subject to the
satisfaction of customary closing conditions.
Under the
terms of the offering, the Company will sell 1,538,464 shares of common stock in
the aggregate at a price of $6.50 per share. The purchasers will also receive
warrants to purchase 1,538,464 shares of common stock in the aggregate which are
exercisable commencing 181 days following issuance for a period of five years
and have an exercise price of $7.50 per share. Net proceeds from the
offering will be used primarily for general working capital
purposes. The Company is required to file a resale registration
statement on or before June 1, 2010 that covers the resale by the purchasers of
the shares and the shares issuable upon exercise of the warrants.
Commenting
on the agreement Kexuan Yao, China Armco’s Chairman and CEO stated “We are
pleased to have secured this additional capital to fuel our growth plans for the
future. This financial flexibility will enable us to accelerate our
growth plans in our scrap metal recycling operations as well as enable the
opportunistic expansion of our distribution business.”We believe that securing
this financing will significantly enhance our ability to rapidly grow our
businesses for the foreseeable future.”
Rodman
& Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital
Group, Inc. (NASDAQ:RODM - News), acted as the
exclusive placement agent for the offering.
This
press release shall not constitute an offer to sell or the solicitation of an
offer to buy securities. The securities offered and sold in the private
placement have not been registered under the Securities Act of 1933, as amended,
or any state securities laws, and may not be offered or sold in the United
States absent registration, or an applicable exemption from registration under
the Securities Act and applicable state securities laws.
About
China Armco Metals, Inc.
China
Armco Metals, Inc. is engaged in the sale and distribution of metal ore and
non-ferrous metals throughout the PRC and has entered the recycling business
with the recent launch of operations of a 1-million ton per year shredder and
recycler of metals located on 32 acres of land acquired by China Armco. China
Armco maintains customers throughout China which includes the fastest growing
steel producing mills and foundries in the PRC. Raw materials are supplied from
global suppliers in India, Hong Kong, Nigeria, Brazil, Turkey, and the
Philippines. China Armco's product lines include ferrous and non-ferrous ore,
iron ore, chrome ore, nickel ore, magnesium, copper ore, manganese ore and steel
billet. The recycling facility is expected to be capable of recycling one
million metric tons of scrap metal per year which will position China Armco as
one of the 10 largest recyclers of scrap metal in China. China Armco estimates
the recycled metal market as 70 million metric tons.
Certain
matters discussed in this news release and oral statements made from time to
time by representatives of the Company may constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995 and
the Federal securities laws. Although the Company believes that the expectations
reflected in such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that its expectations will be
achieved.
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Forward-looking
information is subject to certain risks, trends and uncertainties that could
cause actual results to differ materially from those projected. Many of these
factors are beyond the Company’s ability to control or predict. Important
factors that may cause actual results to differ materially and that could impact
the Company and the statements contained in this news release can be found in
the Company’s filings with the Securities and Exchange Commission. For
forward-looking statements in this new release, the Company claims the
protection of the safe harbor for forward-looking statements contained in the
Private Securities Litigation Reform Act of 1995. The Company assumes no
obligation to update or supplement any forward-looking statements whether as a
result of new information, future events or otherwise.
Source:
China Armco Metals, Inc.
Contact:
info@rodmanandrenshaw.com
Rodman
& Renshaw, LLC
1251
Avenue of the Americas
New York,
NY 10020
(212)
356-0530
www.rodm.com
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