American Nano Silicon Technologies Plans Production of 50,000 tons of Micro-Nano Silicon

American Nano Silicon Technologies, Inc. (New York, New York) announced on March 30th that it had sold 2,100,000 shares of common stock and 2,000,000 Series B Common Stock Warrants to three accredited institutional investors and an accredited individual investor. The investors purchased the securities on March 26th, 2010 for $1 million in cash. Within the next four months, the investors have an option to purchase up to an additional 2,100,000 shares of common stock and 2,000,000 Series B Warrants for $1,000,000. During the next 3 years, the Series B Warrant will permit the holders to purchase Common Stock at $1.50 per share.
In connection with the offering, certain shareholders of American Nano Silicon granted to the investors:
A Shareholder Put Option which allows the investors to require one of the shareholders to purchase up to 1,500,000 shares of Common Stock at $0.75 per share during the six month period commencing one year from the closing date. Three-year Warrants to purchase from the shareholders up to 2,000,000 shares of Common Stock at $0.80 per share.
American Nano Silicon Technologies’ focus will continue to be on consumer chemical products.
However, Mr. Pu Fachun, American Nano Silicon’s President said: “As the Company grows, we may also extent our business scope into the industries of paint, rubber and plastics and other related industries with higher added value. These industries can also utilize our ultra fine crystal structured micro-nano silicon products.” The company plans to use the net proceeds from the offering primarily to provide working capital for the construction of its micro-silicon production line, which will have an annual production capacity of 50,000 tons.
American Nano Silicon Technologies, Inc. (OTC Bulletin Board: ANNO), through its 95%-owned subsidiary, Nanchong Chunfei Nano Silicon Technologies Co., Ltd., is engaged in the business of manufacturing and distributing Micro-Nano Silicon. Micro-Nano Silicon™ is adaptable to and widely used in many consumer and industrial products, including laundry detergent, petrochemical, plastics, rubber, paper, ceramics and water treatment materials etc.
Source:
American Nano Silicon Technologies Company, Inc.