China Opportunity Acquisition (CHNQ) research, news, and more from GeoInvesting

Company description

Wed, 22 Apr 2009 04:00:00 GMT

China Opportunity Acquisition Corp. (the ‘‘Company’’) was incorporated in Delaware on August 7, 2006 as a blank check company whose objective is to acquire, through a stock exchange, asset acquisition or other similar business combination, an operating business, or control of such operating business through contractual arrangements, that has its principal operations located in the People’s Republic of China

Due to a merger announced on of November 13, 2008, the company will emerge from its Blank Check status to become an operating entity:

China Opportunity Acquisition Corp has entered into a definitive merger agreement with Golden Green Enterprises. The transaction is currently expected to close in March 2009.

Ge Rui is a leading private manufacturer of cold-rolled specialty steel products in China. It utilizes a variety of processes and technologies to convert steel manufactured by third parties into thin steel sheet and plates. Its products are focused predominantly on high-end, value-added finished steel products that are sold entirely to companies within China. Ge Rui serves a broad customer base, which consists of over 200 manufacturers serving a wide range of industries.. Ge Rui’s products are sold into the Chinese domestic market, primarily to the Eastern and Coastal regions.

China Opportunity Acquisition Corp has completed its previously announced merger transaction with Golden Green Enterprises.

Source: Business Wire (March 18, 2009)

SPAC Activity

Sat, 31 Jan 2009 05:00:00 GMT

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

SPAC Activity

Wed, 17 Dec 2008 05:00:00 GMT

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.

Financial Target Agreements

Wed, 17 Dec 2008 05:00:00 GMT

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