Attached files
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| 8-K - ShengdaTech, Inc. | v205164_8k.htm |
| EX-10.1 - ShengdaTech, Inc. | v205164_ex10-1.htm |
Exhibit
99.1
SHANGHAI,
Dec. 10, 2010 /PRNewswire-Asia-FirstCall/ -- ShengdaTech, Inc. ("ShengdaTech" or
the "Company") (Nasdaq:SDTH), a leading
manufacturer of nano-precipitated calcium carbonate ("NPCC") in China, today
announced the pricing of its private offering of $130.0 million in aggregate
principal amount of its 6.5% senior convertible notes due 2015 (the "Notes").
The transaction is expected to close on December 14, 2010. There will not be an
option to purchase any additional Notes. The initial conversion rate for the
Notes is 164.6904 shares of ShengdaTech's common stock per $1,000 principal
amount of Notes (representing an initial conversion price of approximately $6.07
per share of common stock). The net proceeds to ShengdaTech from this offering,
after deducting the initial purchaser's discounts and commissions, will be
approximately $123.5 million.
The Notes
will accrue interest from December 14, 2010, and will be payable semiannually in
arrears on June 15 and December 15 of each year, beginning on June 15, 2011.
ShengdaTech intends to use approximately $67.0 million of the net proceeds from
the offering to repurchase a portion of the Company's existing convertible notes
due 2018. The Company plans to use the remaining net proceeds to finance its
NPCC production capacity expansion, the Company's research and development
activities, and other working capital requirements.
The Notes
and ShengdaTech's shares of common stock issuable upon conversion of the Notes
have not been and will not be registered under the Securities Act of 1933, as
amended (the "Securities Act") or any state securities laws and may not be
offered or sold in the United States or to any U.S. persons absent registration
under the Securities Act, or pursuant to an applicable exemptions from, or in a
transaction not subject to, the registration requirements of the Securities Act.
The notes will only be offered and sold to "qualified institutional buyers"
under Rule 144A of the Securities Act.
This
press release does not constitute an offer to sell or the solicitation of an
offer to buy the Notes or any shares of common stock issuable upon the
conversion of the Notes and shall not constitute an offer, solicitation or sale
in any jurisdiction in which such offer, solicitation or sale would be
unlawful.
About
ShengdaTech, Inc.
ShengdaTech
is engaged in the business of manufacturing, marketing, and selling
nano-precipitated calcium carbonate ("NPCC") products. The Company converts
limestone into NPCC using its proprietary and patent-protected technology. NPCC
products are increasingly used in tires, paper, paints, building materials, and
other chemical products. In addition to its broad customer base in China, the
Company currently exports to Singapore, Thailand, South Korea, Malaysia, India
and Latvia. For more information, contact CCG Investor Relations directly or go
to ShengdaTech's website at http://www.shengdatechinc.com.
Safe
Harbor Statement
Certain
statements in this press release, constitute forward-looking statements for
purposes of the safe harbor provisions under The Private Securities Litigation
Reform Act of 1995. These statements include, without limitation, statements
regarding the Company's senior convertible notes offering and use of proceeds.
We have based these forward-looking statements largely on our current
expectations and projections about future events and financial trends but they
involve risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. You are cautioned not
to place undue reliance on such forward-looking statements, which are qualified
in their entirety by this cautionary statement. The forward-looking statements
made herein speak only as of the date of this press release and the Company
undertakes no duty to update any forward-looking statement to conform the
statement to actual results or changes in the company's
expectations.
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Contact:
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Anhui
Guo, Chief Operating Officer
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ShengdaTech,
Inc.
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gah@shengdatech.com
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www.shengdatechinc.com
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CCG
Investor Relations
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Crocker
Coulson, President
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Tel:
+1-646-213-1915 (NY office)
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Email: crocker.coulson@ccgir.com
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www.ccgirasia.com
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Elaine
Ketchmere, Partner
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Tel:
+1-310-954-1345 (LA office)
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Email: elaine.ketchmere@ccgir.com
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