AutoChina International Sets Redemption Date of Warrants
December 08 2009 - 9:00AM
Business Wire
AutoChina International Limited (“AutoChina” or the “Company”)
(NASDAQ: AUTC, AUTCW, AUTCU), a leading one-stop commercial vehicle
sales and leasing company in China offering its customers
affordable lease-to-own options, today announced that it is sending
out redemption notices to all of the record holders of its issued
and outstanding ordinary share purchase warrants, which trade under
the ticker symbol AUTCW. The final redemption date for the warrants
will be January 8, 2010 (the “Redemption Date”). Holders of
warrants who have not exercised them by the Redemption Date will be
paid $0.01 per warrant, and the warrants will be extinguished.
In accordance with the Warrant Agreement governing the warrants,
AutoChina is entitled to redeem these warrants because the last
sales price of its ordinary shares was $11.50 or more for at least
20 trading days within the 30 trading day period ending on the
third business day prior to the date notice of redemption was sent
to warrant holders of record, and because there is a current and
effective registration statement covering the ordinary shares
underlying the warrants. The closing price of AutoChina’s ordinary
shares on December 7, 2009 was $25.
There are currently approximately 4.2 million warrants issued
and outstanding. Assuming exercise of all issued and outstanding
warrants, AutoChina would receive gross proceeds of approximately
$21 million and there will be a total of approximately 15.2 million
ordinary shares of AutoChina issued and outstanding after the
Redemption Date. The Company intends to use the proceeds from the
warrant redemption to continue the expansion of its commercial
vehicle sales and leasing business.
The ordinary share purchase warrants were originally issued by
AutoChina, which was formerly known as Spring Creek Acquisition
Corp. (Spring Creek), in connection with Spring Creek’s initial
public offering in February 2008.
Prior to the Redemption Date, holders of the warrants may
exercise them for ordinary shares by sending the warrants, together
with payment in full of $5.00 per warrant, to American Stock
Transfer and Trust Company LLC, the Company’s transfer and warrant
agent. If you have any questions regarding the redemption, please
call American Stock Transfer and Trust Company LLC at (877)
248-6417 or (718) 921-8317.
About AutoChina International Limited:
AutoChina International Limited is a leading one-stop commercial
auto financing and sales company in China. AutoChina’s operating
subsidiary was founded in 2005 by nationally recognized Chairman
and CEO, Yong Hui Li. The Company’s website is
http://www.autochinaintl.com.
Safe Harbor Statement:
This press release may contain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
about the Company. Forward-looking statements are statements that
are not historical facts. Such forward-looking statements, based
upon the current beliefs and expectations of the Company's
management, are subject to risks and uncertainties, which could
cause actual results to differ from the forward-looking statements.
The following factors, among others, could cause actual results to
meaningfully differ from those set forth in the forward-looking
statements:
- Continued compliance with
government regulations;
- Changing legislation or
regulatory environments;
- Requirements or changes
affecting the businesses in which the Company is engaged;
- Industry trends, including
factors affecting supply and demand;
- Labor and personnel
relations;
- Credit risks affecting the
Company's revenue and profitability;
- Changes in the automobile
industry;
- The Company’s ability to
effectively manage its growth, including implementing effective
controls and procedures and attracting and retaining key management
and personnel;
- Changing interpretations of
generally accepted accounting principles;
- Whether the transaction to sell
the automobile dealership business is consummated;
- General economic conditions;
and
- Other relevant risks detailed in
the Company’s filings with the Securities and Exchange
Commission.
The information set forth herein should be read in light of such
risks. The Company does not assume any obligation to update the
information contained in this press release.
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