China Water & Drinks Signs Agreement for Private Placement of $50 Million of Convertible Notes
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CCG
Elite Investor Relations
Xxxxxxx
Xxxxxxx, President
Phone:
000-000-0000
xxxxxxx.xxxxxxx@xxxxx.xxx
Xxxxxx
Xxxxxxxxxx, Financial Writer
Phone:
000-000-0000 x 000
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FOR
IMMEDIATE RELEASE
China
Water & Drinks Signs Agreement for Private Placement of $50 Million of
Convertible Notes
Shenzhen,
China - January 25, 2008
-China
Water and Drinks, Inc. (OTCBB: CWDK) (“China Water and Drinks” or “the
Company”), a leading producer and distributor of bottled water in the People's
Republic of China, today announced it has signed an agreement to raise $50
million through a private placement of convertible notes. Investors included
Xxxxxxx Xxxxx, Liberty Harbor Master Fund I, L.P., The Pinnacle Fund, L.P.
and
Pinnacle China Fund, L.P., among others. The net proceeds will be used for
acquisitions.
“We
are
extremely pleased with the successful raise of $50 million,” commented Xx.
Xxxxxxx Xxxx, Chief Executive Officer of China Water & Drinks. “We believe
there is a tremendous opportunity for us to expand our market penetration as
Chinese consumers are increasingly choosing bottled water as their preferred
choice of beverage.”
The
convertible notes will bear an interest rate of 5.0% per annum, payable
quarterly in arrears beginning March 31, 2008. The note will initially be
convertible into shares of China and Drinks’ common stock at a conversion price
of $4.25 per share. For more detailed information on the financing referred
to
in this release, reference is made to the Company’s Form 8-K filing with the
Securities and Exchange Commission and related Exhibits thereto.
The
convertible notes issued in the private placement have not been registered
under
the Securities Act or any state securities laws and may not be offered or sold
in the United States except pursuant to an effective registration statement
filed with the Securities and Exchange Commission or pursuant to an applicable
exemption from the relevant registration requirements. The Company has agreed
to
file a registration statement with the SEC for the resale of the convertible
notes sold in the private placement.
This
press release shall not constitute an offer to sell or the solicitation of
an
offer to buy any of these securities nor shall there be any sale of these
securities in any state or jurisdiction in which such offer, solicitation or
sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
About
China Water & Drinks, Inc.
China
Water & Drinks, Inc. is a leading producer and distributor of bottled water
in China. Through its production facilities in Guangzhou, Zhanjiang, Feixian,
Changchun, Nanning and Shenyang, the Company produces and distributes bottled
water to eleven provinces in China. The Company markets its own product under
the brand 'Darcunk', supplies purified water to both local and international
beverage brands such as Coca-Cola and Uni-President and provides private label
bottled water for companies such as Sands Casino, Macau.
Safe
Harbor Statement under the Private Securities Litigation Reform Act of 1995
This
press release contains certain "forward-looking statements," as defined in
the
United States Private Securities Litigation Reform Act of 1995, that involve
a
number of risks and uncertainties. There can be no assurance that such
statements will prove to be accurate and the actual results and future events
could differ materially from management's current expectations. Such factors
include, but are not limited to the Company's ability to complete product
orders, coordinate product design with its customers, ability to expand and
grow
its distribution channels, political and economic factors in the People's
Republic of China, the Company's ability to find attractive acquisition
candidates, dependence on a limited number of larger customers and other factors
detailed from time to time in the Company's filings with the United States
Securities and Exchange Commission and other regulatory authorities. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
###
