SRFF’s Asian Practice Group acted for Tianjin
Shengkai Industrial Technology Development Co., Ltd in relation to a private
capital raise of $15 million, which successfully closed on June 11, 2008.
The attorneys who advised on the transaction are Marc Ross (Partner),
Benjamin Tan (Of Counsel), and Jessica Yuen (Associate). SRFF warmly
congratulates Tianjin Shengkai Industrial Technology Development Co., Ltd
and wish them continued success.
Source: PR Newswire
TO
BUSINESS AND RETAILING EDITORS:
Southern Sauce Company, Inc. Acquires Tianjin Shengkai
Industrial Technology Development Co., Ltd. and Completes $15 Million
Financing
TIANJIN, China, June 12 /PRNewswire-FirstCall/ -- Southern Sauce Company,
Inc. (the "Company")(OTC Bulletin Board: SOSA.OB) today announced the
acquisition on June 9, 2008 of Shen Kun International Limited, a British
Virgin Islands corporation which, through Shengkai (Tianjin) Ceramic Valves
Co., Ltd., a Chinese company, has a series of contracts with Tianjin
Shengkai Industrial Technology Development Co., Ltd., a Chinese company ("Shengkai"),
which gives it control over Shengkai's business, personnel and finances as
if it were a wholly-owned subsidiary. Shengkai is engaged in the design,
manufacturing and sales of ceramic valves, the manufacturing and sales of
high-tech ceramic materials, technical consultation and services, and the
import and export of ceramic valves and related technologies. Shengkai
sells its products in China, North America and the Asia-Pacific region.
On
June 11, 2008, the Company also closed a private placement through the sale
of Units, consisting of shares of its Series A Convertible Preferred Stock
and attached five-year warrants, at a purchase price of $2.5357 per Unit for
aggregate gross proceeds of $15 million. The Series A Convertible Preferred
Stock is convertible into an aggregate of up to 5,915,526 shares of the
Company's common stock at the option of the holders of such Series A
Convertible Preferred Stock. The five-year warrants are exercisable at an
exercise price of $3.52 per share for a number of shares of common stock
equal to 120% of the number of shares of common stock issuable upon
conversion of the Series A Convertible Preferred Stock (an aggregate of up
to 7,098,632 shares of common stock).
Over the past two years, Shengkai's business has shown significant growth
with net revenues increasing to $23,124,748 for the fiscal year ended June
30, 2007 from $13,677,946 for the fiscal year ended June 30, 2006. Net
income was $6,571,802 for the fiscal year ended June 30, 2007, an increase
from $4,173,926 for the fiscal year ended June 30, 2006.
Mr.
Wang Chen, Chief Executive Officer of the Company stated, "The closing of
our merger transaction and financing provide us with the capital investment
we need to accelerate the growth of Shengkai's business. We plan to use the
proceeds from the financing towards the expansion of our existing production
capacity as we work to meet the growing demand for our products. We also
plan to use the funds towards the research and development of new ceramic
products."
About Tianjin Shengkai Industrial Technology Development Co., Ltd.
Shengkai is engaged in the design, manufacturing and sales of ceramic
valves, the manufacturing and sales of high-tech ceramic materials,
technical consultation and services, and the import and export of ceramic
valves and related technologies. These industrial valve products are used
by companies in the electric power, petrochemical, metallurgy, and
environmental protection industries as high-performance, more durable
alternatives to traditional metal valves.
Shengkai develops ceramic products with more than 700
types and specifications in 32 series, under nine categories. Of these,
Chinese patents have been obtained for 12 products, and applications for
nine more are pending.
Shengkai's products have won
the title of "National Key New Product" in China four times from 1999-2003
and won a silver medal in the Shanghai International Industry Fair in 2002.
Shengkai's products are sold across China and are exported to North America,
and other countries in the Asia-Pacific region, totaling over 300
customers. After a six-year application process, Shengkai became a supplier
of China Petroleum & Chemical Corporation in 2005 and a Class A member of
the PetroChina Co. Ltd. supply network in 2006.
Safe Harbor Statement
The
statements contained herein that are not historical facts are considered
"forward-looking statements." Such forward-looking statements may be
identified by, among other things, the use of forward-looking terminology
such as "believes," "expects," "may," "will," "should," or "anticipates" or
the negative thereof or other variations thereon or comparable terminology,
or by discussions of strategy that involve risks and uncertainties. In
particular, statements regarding the potential growth of the markets are
examples of such forward-looking statements. The forward-looking statements
include risks and uncertainties, including, but not limited to, the effect
of political, economic, and market conditions and geopolitical events;
legislative and regulatory changes that affect our business; the
availability of funds and working capital; the actions and initiatives of
current and potential competitors; investor sentiment; and our reputation.
We do not undertake any responsibility to publicly release any revisions to
these forward-looking statements to take into account events or
circumstances that occur after the date of this report. Additionally, we do
not undertake any responsibility to update you on the occurrence of any
unanticipated events, which may cause actual results to differ from those
expressed or implied by any forward-looking statements. The factors
discussed herein are expressed from time to time in our filings with the
Securities and Exchange Commission available at
http://www.sec.gov.
SOURCE
Southern Sauce Company, Inc.
-0- 06/12/2008
/CONTACT: Wei Guo of Southern Sauce Company, Inc., +86-22-28571971, Fax,
+86-22-28590003, wei.guo@shengkai.com /
/First Call Analyst: /
/FCMN
Contact: /
/Web site: http://www.shengkai.com /
(SOSA SOSA.OB)
