China Precision Steel to offer shares and warrants
China Precision Steel (Nasdaq: CPSL), a niche precision steel processing company, said today that it will issue an aggregate of 7.1 million shares at $6.75 per share and an aggregate of 1.42 warrants to purchase its common stock, for gross proceeds of roughly $47.93 million.
China Precision said approximately $18 million of the net proceeds, after payment of fees and expenses related to the offering, will be used to purchase a new hydrogen annealing furnace and a new 1700 mm cold roll mill. Approximately $22 million will be used to repay certain existing bank debt, with the balance available for general corporate purposes.
Shares of China Precision (CPSL) slid 6.51%, or $0.55, to $7.90 in pre-market trading. Shares of China Precision have been trading in the range of $2.58 to $16.58 for the past 52 weeks.
