Bronze Marketing, Inc. to close Private Placement Financing transaction with BVI-registered Sutor Steel Technology
Bronze Marketing, Inc., on February 2, 2007 has announced the closing of the stock exchange transaction with the shareholders of Sutor Steel Technology Co., Ltd., and a related private placement financing transaction. As a result of this transaction, the BVI-registered Sutor Steel has become a wholly-owned subsidiary of Bronze Marketing; the senior executives of Sutor Steel were elected as executive officers of Bronze Marketing. Now both companies will operate on a consolidated basis, executing upon the current business plan of Sutor Steel.
In this stock exchange transaction, the company’s shareholders were issued 323,380.52 shares of Bronze Marketing’s Series B Voting Convertible Preferred Stock, for 100% of the issued and outstanding shares of Sutor Steel. These shares received by the stockholders of Sutor Steel make 85.2% of the total capital stock of Bronze Marketing.
Bronze Marketing also closed a private placement of its capital stock whereby it issued 39,473.68 shares of its Series B Voting Convertible Preferred Stock, in exchange for $12.0 million in gross offering proceeds, before any commissions and fees. The Series B shares issued to investors in the private placement transaction make approximately 10.4% of the total issued and capital stock of Bronze Marketing. Roth Capital Partners, LLC acted as the placement agent in the $12 million private placement transaction.
Sutor Steel is manufacturing and selling steel finishing fabrication products, through its wholly owned subsidiaries Changshu Huaye Steel Strip Co., Ltd. and Jiangsu Coldrolled Technology Co., Ltd., registered in the People’s Republic of China. The corporation’s products are generally used in the construction industry, widely applied in the manufacturing of electrical household appliance parts and outer casings, electrocnics, infrastructure and large industrial equipment. Currently there over 270 people employed by the company. Sutor Steel is investing a total of about $49 million to complete its vertical integration strategy and expand its galvanizing production capacity.