MEDIA RELEASE PR41102
Hudson Securities Completes $30 Million PIPE Financing for Chinese Motor Vehicle Company
JERSEY CITY, N.J., Sept. 6 /PRNewswire-AsiaNet/ --
Hudson Securities, Inc. today announced the completion of a $30 million private placement transaction for
Jinhao Motor Company (OTCQB: GIMC), a Nevada-headquartered company that manufactures motorcycles
and small engines for overseas and domestic markets at its subsidiary in the People's Republic of China. The
private investment in a public equity (PIPE) financing was part of a reverse merger with U.S.-listed Georgia
International Mining Corp. Hudson Securities acted as the sole placement agent of the convertible preferred
stock and warrants on behalf of Jinhao, and was an advisor in the reverse merger.
According to PlacementTracker, which is a service of Sagient Research
Systems, this is the second largest PIPE transaction completed concurrently
with a reverse merger since January 2008.
"The transaction underscores the strength of our cross-border investment
banking group's origination, execution and syndication capabilities to
address the capital-raising needs of Chinese and other non-U.S. companies,"
stated Anthony M. Sanfilippo, Chief Executive Officer of Hudson Securities.
"With continued market uncertainty, we're committed to providing an array of
financing solutions to serve the needs of micro-, small- and mid-cap
companies as well as their investors."
Frank J. Drazka, Head of Investment Banking at Hudson Securities, added:
"We would like to thank Jinhao, Chairman Tsoi and Worldwide Capital, Jinhao's
financial advisor, for selecting Hudson to be a trusted partner and
participating in the success of this transaction."
As part of the reverse take-over, Jinhao's major shareholder, Mr. Chak
Shing Tsoi, exchanged his stock in Jinhao with Phoenix-based Georgia
International Mining Corp. for a 95 percent stake. The PIPE investors are
based in Asia, and a portion of the financing was structured to be compliant
with Sharia Law.
Hudson Securities offers a range of investment banking and corporate
services to non-U.S. companies including public and private placements of
debt and equity, exchange listings, non-deal roadshows, M&A advisory and
restructuring. The firm also recently completed transactions for Chinese and
Australian clients in industries including industrial technology and consumer
products.
About Jinhao Motor Company
Jinhao is primarily engaged in the production and distribution of
motorcycles and small engines for overseas and the domestic markets. In 2006,
the Company began a research and development program for electric cars and in
2009 established an electric vehicle manufacturing plant. Jinhao has
developed and manufactured prototypes of several models of electric vehicles,
including utility vehicles, and a compact two-door and a mid-size four-door
car, both of which are used in city and highway environments. Since October
2009, the Company has delivered over 1,500 electric vehicles to customers
both domestically and internationally. Jinhao has invested over $45 million
in R&D for electric vehicles. The Company has signed sales agency agreements
for electric vehicles with six distributors across China and overseas, and
has signed sales contracts for electric vehicles with distributors from
Spain, Finland, Italy, Chile and Thailand. Jinhao is also focused on
developing distribution channels for electric vehicles into the EU and the
United States. The Company's electric vehicles are expected to be priced much
lower than similar models produced by other car manufacturers in the
international market. Jinhao's primary strength lies in its existing strong
global sales distribution network from the motorcycle business. For
About Hudson Securities
Hudson Securities, Inc., a subsidiary of Hudson Holding Corporation (OTC
Bulletin Board: HDHL), provides a full range of corporate finance, advisory,
and capital markets services and institutional equity research focused on the
micro-, small- and mid-cap marketplace. Hudson Securities is dedicated to
meeting the liquidity needs of its clients by providing execution solutions
and making markets in over 15,000 U.S. and foreign securities. As a
registered broker-dealer under the Securities Exchange Act of 1934, Hudson
Securities is a member of the Financial Industry Regulatory Authority
("FINRA").
Media Contact:
Aimee Baxter
CJP Communications
212 279 3115 x225
abaxter@cjpcom.com
SOURCE: Hudson Securities, Inc.
CONTACT: Aimee Baxter
of CJP Communications, for Hudson Holding Corporation,
+1-212-279-3115 x225,
abaxter@cjpcom.com
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