DANVILLE, Calif., Feb. 3, 2011 (GLOBE NEWSWIRE) -- S3Investment Company, Inc. (Pink Sheets:SIVC) today announced that its wholly owned Redwood Capital subsidiary has signed a new client agreement with an established manufacturer of pumps, motors and related products in China. Redwood Capital, which assists private Asian companies through the process of accessing capital markets through Alternative Public Offering (APO) transactions, has been engaged as the Asia merchant banking financial advisor for the client. The new client was established in 1993 and is counted among one of the 500 biggest machine enterprises of China.
Under terms of the agreement, Redwood Capital will work with the client to provide advisory services for an anticipated funding and public listing process. The anticipated services include: business analysis and valuation; pre-audit work; supervision of the audit process; supervision of U.S. and China legal work; preparation and packaging of related documents; investor selection; listing preparation; syndicate presentations through anticipated investor road shows; listing and funding on a targeted international stock exchange; and specified post-offering services.
The targeted amounts of the funding are up to a US$ 60 million initial gross funding requirement and up to $200 million in follow-on offerings. In exchange for its services, Redwood Capital is compensated in cash and stock of the client company once it is listed on a public exchange.
S3 Investment Company Chairman/CEO Jim Bickel, who is currently in China to oversee new Redwood Capital client signings and the review of current and potential clients, commented, "Redwood Capital continues its success in identifying quality potential clients, conducting the necessary pre-contract due diligence, and reaching agreement with companies that meet its deal standards. We look forward to working closely with this new client and ultimately bringing a funding and public listing process to close."
This is the second recent new client signing for Redwood Capital, and the company is currently reviewing additional potential clients.
Since its formation, Redwood Capital has participated in transactions for clients which are now listed on exchanges including the U.S. Over-the-Counter Bulletin Board (OTCBB) market and Canada's Toronto Stock Exchange (TSX) and another client is currently in the conditional closing stage for a listing on the Australian Stock Exchange.
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About S3 Investment Company, Inc.
S3 Investment Company, Inc. (http://www.redwoodgroupint.com ) and its Redwood Group International subsidiary are focused on facilitating the success of its subsidiaries operating in the China market, including Redwood Capital, Inc. Redwood Capital assists private companies in Asia through the process of accessing capital markets through Alternative Public Offerings (APO) transactions. The company has participated in transactions for clients which are now listed on exchanges including the U.S. Over-the-Counter Bulletin Board (OTCBB) market and Canada's Toronto Stock Exchange (TSX) and has a pending client transaction on the Australian Stock Exchange. For more information, please visit http://www.redwoodcapinc.com. The Redwood Asia Fund, LP is a private equity fund formed to facilitate faster capital response to the financing needs of Redwood Capital clients. Redwood Medical, Inc. assists companies seeking to import and distribute Western medical technologies and products into the China market.
Any statements contained herein related to future events are forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Readers are cautioned not to place undue reliance on forward-looking statements. S3 Investment Company, Inc. undertakes no obligation to update any such statements to reflect actual events.