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

ChinaCache International Raises $5M at 23% Discount

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ChinaCache International Holdings Limited (CCIH) announced that it has raised $54,999,999 in a Common Stock transaction. The common stock was sold at $16.34 per share, an approximate 23% discount to the market price ($21.10) of CCIH at deal announcement. Note this Placement is subject to customary closing conditions and is expected to close by 03/31/2014. via PlacementTracker.