Skypeople Fruit Juice (NASDAQ:SPU)

Today, Skypeople Fruit Juice confirmed our suspicion that it would need to offer shares before July. Reference the S1/A filing.

The good news is that the funds will likely be put to use for growth initiatives:

"Use of proceeds We intend to use the net proceeds to us from this offering for capital expenditures, working capital and other general corporate purposes. We expect our capital expenditures to primarily include improvements to the Huludao Wonder and Qiyiwangguo facilities . We may also use a portion of the net proceeds to us from this offering to acquire or license products, technologies or businesses we believe to be complementary, but we currently have no agreements, commitments or understandings relating to any material acquisitions or licenses." 

We will reach out to the company to determine how fast funds will be deployed.   

SPU reported strong first quarter financial results for its 2010 first quarter:

EPS increased 157% to $0.18 and exceeded analyst estimates of $0.11. Investors should recall our references from our initial article on December 28, 2009, where we discussed the possibility that SPU would have to raise funds before before the next 2010 squeezing season (July 2010) to maintain growth. Thus, we may have to mindful of dilution depending on how fast the company would implement funds. Also, the next two quarters are the company's seasonality weakest quarters. Thus, short term investors may look elsewhere.

We are listening the conference call this morning for further input into the 2010 outlook