Vision Opportunity China Fund has invested USD7.0m in China Gerui Advanced Materials Group as part of a USD18.8m financing by private placement.
Founded in 2000 in Zhengzhou City of Henan Province, China Gerui is a steel processing company that manufactures and sells specialty steel products in China.
China Gerui has over 200 domestic Chinese customers in a range of industries, including food and packaging, construction materials, telecommunications and electrical appliances.
In return for its investment, VOC received 1,228,070 shares of China Gerui’s common stock at a price per share of USD5.70.
China Gerui plans to use the net proceeds to finance the expansion of its cold-rolled steel production capacity, accelerate the build-out of a chromium-plating production line of 200,000 metric tons that was originally scheduled for 2011, and for general working capital purposes related to the expanded production capacity.