China Opportunity Acquisition (OTC BB:CHNQ)

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All | Financial Target Agreements | SPAC Activity

Saturday, January 31, 2009

SPAC Activity

CHNQ Sets Date for Special Meeting of Stockholders to Vote on the Proposed Merger with Chinese Specialty Steel Company ( Golden Green Enterprises)for Tuesday, March 10, 2009 at 10:00 a.m. Eastern Time.  The company entered into a preliminary merger agreement on November 13, 2008.

Source: Business Wire (January 30, 2009)

Details Worth Noting:

  • Golden Green Enterprises is a leading independent manufacturer of high precision, ultra-thin, cold-rolled specialty steel products in China
  • Large growth opportunity supported by economic growth in China and limited domestic supply
  • Solid historical and projected growth trends: Golden Green Enterprises 2007 revenue and net income were $139.6 million and $23.7 million, respectively – up 41% and 49%, respectively year over year
  • High barriers to entry due to capital intensive nature of the high-end steel products industry
  • Limited exposure to commodity price fluctuations
  • Combination will allow the business to increase capacity in an under-supplied market and expand into other high margin products
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Wednesday, December 17, 2008

SPAC Activity

China Opportunity Acquisition Corp has entered into a definitive merger agreement with Golden Green Enterprises.

There will be $38.4 million outstanding shares post merger.  Also, additional shares can be issued if the company meets certain Net Income Targets.

The transaction is currently expected to close in March 2009.

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Financial Target Agreements

Shareholders of the transaction will be eligible to receive up to a total of 3.0 million contingent shares of the combined company, consisting of 1.0 million shares each year, in 2009, 2010, and 2011 if the combined company generates the following Net Income Targets:

 2009:  $45.0 million

 2010:  $60.0 million

 2011:  $80.0 million

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