Zhejiang ZF invests in Canada's Empire Industries

Empire issued 60 million units at $0.05 apiece - each consisting of one common share and one-half of a warrant - with ZZG subsidiary Canada Zhoufa Agricultural Holding Company purchasing 50.4 million units for $2.52 milliion.

Empire management acquired 9.6 million units - the remaining 16% of the placement - for $480,000. Each warrant entitles the holder to purchase one additional common share at $0.05 apiece within a year of the closing date, or at $0.10 within the next five years.

Empire and ZZG announced the formation of a joint venture back in May, taking stakes of 51% and 49%, respectively. The company, which will design and manufacture amusement rides for the Asian market, is to be capitalized with $2 million from Empire and $1.9 million from ZZG.

In a related move it was announced that Canada Zhoufa will also subscribe to a $2 million convertible debenture from Empire, however this and the joint venture capitalization - plus two credit facilities planned for Empire and the joint venture - will now close at a later date, a statement said.

ZZG is a personal holding company founded by Junliang Xie with 10 private equity investments, predominately in China, to date.

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• Topics
• Greater China
• North America
• Industrials
• China
• Canada
• Joint Venture
• manufacturing