Markets

Committed Capital SPAC Raises $35M in IPO

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Committed Capital Acquisition Corp. (CCAQU)  has completed its IPO, raising $35 million. The SPAC sold an aggregate of 7,000,000 units at a price of $5.00 per unit. Each unit issued consisted of one share of common stock and one warrant to purchase one-half of one share of common stock at an exercise price of $5.00 per whole share. The company's units began trading on the OTCBB under the ticker symbol "CCAQU" on April 11, 2014

Broadband Capital Management acted as sole manager and representative of the underwriters of the offering.

Legal
Faith Anderson, NASAA

NASAA Uses Congressional Back Channels to Fight SEC on Reg A+ Pre-emption

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The North American Securities Administrators Association (NASAA) commanded a private sit down with SEC Chairwomen Mary Jo White and Commissioner Luis Aguilar on April 9 to discuss federal pre-emption issues the state securities regulators group sees as a problem in the proposed rulemaking on Regulation A+, the expanded securities offering exemption mandated by the JOBS Act. A former SEC director, Tom Sporkin of BuckleySandler, has been hired by the group to put muscle behind the association’s threats fight the proposed exemption rule, which would allow issuers to bypass state blue sky laws if they are raising less than $50 million of capital. Sporkin attended the April 9meeting with the commissioners. Faith Anderson, NASAA’s general counsel, told Growth Capital Investor in an interview that her take-away from the meeting was, “the SEC wants to have a partnership with the states,” and she thinks the coordinated state review process NASAA has developed would be seriously considered by the SEC. Of the 53 territories that currently have the power to regulate whether companies can issue debt and issue equity securities to investors, 48 have signed on to the streamlined review process.

News
ZST Technologies

Asset Chase Leads Chinese Reverse Merger Investor to Recover Investment and Then Some

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A U.S. investor who lost millions investing in a China reverse-merger company accused of fraud is about to recover 200% of his original investment through a unique legal strategy playing out in the Delaware Chancery Court. Growth Capital Investor has learned a private equity firm has signed a letter of intent and is currently negotiating to buy all of the China-based assets of ZST Digital (ZSTN) that were recovered by a U.S.-based receiver representing the investor. The investor, Peter Deutsch, was awarded a $32 million equity claim against ZST Digital last year after his attorney, David Graff of Anderson Kill, convinced the court to value Deutsch’s investment in ZST at the price the stock traded the last time the company filed financials with the SEC. The court’s appointment of receiver Robert Seiden, CEO of New York-based Confidential Securities, led to a year long chase to track down cash and hard assets in ZST’s Chinese operations and bank accounts.  This included a million dollars of cash found in one of the bank accounts of ZST’s parent companies. Attorney Graff told Growth Capital Investor last year he thought they would find assets of $75-$100 million in the parent company and subsidiaries of ZST.

Deals

Juhl Energy Announces $5.7M Rights Offering at 9% Premium

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Juhl Energy Inc. (JUHL) announced a Rights Offering transaction of up to $5,700,000. The Total Rights Offered is 15,000,000 at $0.38 per share, an approximate 9% premium to the market price ($0.35) of JUHL at deal announcement. Issuer counsel was Synergy Law Group, LLC. Further details have yet to be disclosed. via PlacementTracker.