Sinohub (NYSE AMEX:SIHI)

SHENZHEN, March 22, 2011 /PRNewswire-Asia/ -- SinoHub, Inc. today announced that it completed its previously announced registered direct offering of 4,791,097 shares of common stock and warrants to purchase up to 1,437,329 shares of common stock with a select number of institutional investors.  The common stock was sold at a negotiated purchase price of $2.30 per share, and each purchaser received a warrant to purchase 0.3 shares of common stock for each share of common stock that it purchased in the offering. The warrants are non-exercisable for six months and have a term of exercise of thirty months from the date of issuance and an exercise price of $3.00. The Company received gross proceeds from the offering of approximately $11 million, before deducting placement agents' fees and estimated offering expenses. The Company intends to use the net proceeds from the sale of the shares and warrants pursuant to this offering for general corporate purposes and working capital.  

SHENZHEN, China, March 16, 2011 /PRNewswire-Asia-FirstCall/ -- SinoHub, Inc. today announced that it has entered into definitive agreements with a select number of institutional investors to sell 4,791,097 shares of common stock and warrants to purchase up to 1,437,329 shares of common stock in a registered direct offering.  The common stock will be sold at a negotiated purchase price of $2.30 per share, and each purchaser will receive a warrant to purchase 0.3 shares of common stock for each share of common stock that it purchases in the offering. The warrants shall be non-exercisable for six months and have a term of exercise of thirty months from the date of issuance and an exercise price of $3.00. The Company expects to receive gross proceeds from the offering of approximately $11 million, before deducting placement agents' fees and estimated offering expenses.

GeoTeam® Note: We had just indicated that SIHI would tap the equity markets in our blog.

SIHI has been one of the bigger surprises this earnings season. Their cell phone product business model seems to be taking hold, fueled by the smart phone craze and new relationships with high profile customers, such as China Unicom and HT Mobile in Indonesia.  The Company issued revenue guidance of $255 million vs. street estimates of $244 million, but gave no net income guidance. Applying current margins, this guidance implies 2011 EPS range of $0.87 to $1.09, which is much higher than street estimates of $0.73.  Unfortunately, SIHI will likely attempt to tap the capital markets to expand its business, which renders these implied EPS estimates somewhat unreliable.