March 8, 2010 (FinancialWire) — Sutor Technology Group Ltd. (NASDAQ: SUTR) said it has entered into agreements with several institutional investors for a direct placement of up to 2.74 million shares of common stock at a price of $2.70 per share.

The company will see gross proceeds of around $7.4 million. In addition to the issuance of the common shares, the company will issue warrants to the investors to purchase up to around 685,000 common shares.

The warrants will have an exercise price of $3.76 per share, a term of five years and a call price at $5.40 after the one-year anniversary of issuance.

Sutor plans to use the net proceeds from this offering for general corporate purposes, including expanding its R&D facilities and capacity at its existing facilities, investing in new businesses, products and technologies, both through acquisitions and capital programs, funding ongoing operating, repayment of indebtedness and working capital requirements.

China-based Sutor is a manufacturer and distributor of fine finished steel products and welded steel pipes used by a range of down stream applications.

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.