Hollysys Automation Technologies Completes Redemption of All Warrants
Dec 27, 2007
Beijing, China – December 27, 2007 – Hollysys Automation Technologies, Ltd. ("Hollysys") today announced that it has completed the previously announced redemption of its warrants that traded under the ticker symbol HollysysWF. The redemption date for the warrants was December 17, 2007.
There were originally 11,500,000 warrants issued in connection with the August 2005 initial public offering of Chardan North China Acquisition Corp., a specified purpose acquisition corporation that merged with Hollysys in September 2007. Each warrant entitled the holder to purchase from Hollysys one share of the Company's common stock at an exercise price of $5.00. Prior to redemption, a total of 11,442,614 warrants were exercised, equal to approximately 99.5% of all warrants originally issued. The remaining 57,386 warrants were cancelled at redemption and the holders of those warrants will be paid the sum of $0.01 per warrant.
Hollysys received total proceeds from all warrant exercises of approximately $57.2 million. As of December 26, 2007, there are approximately 41.9 million shares of Hollysys' common stock issued and outstanding.
Dr. Wang Changli, Hollysys' Chief Executive Officer, stated, "We have significantly strengthened Hollysys' cash position and net worth. As one of the largest and most technologically advanced automation control systems companies in China, we plan to continue to grow our businesses aggressively in different segments. This capital infusion will be crucial in those efforts."
Hollysys has become one of the leading automation systems providers in the PRC, developing a number of core technologies and completing numerous projects utilizing a wide array of automation products. The Company specializes in the research, development, production, sale and distribution of industrial automation and control systems, competing effectively with both domestic Chinese companies and large, multinational participants in the industrial, rail and nuclear power sectors
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