Empire Resources, Inc. Announces Issuance of $12 Million of Convertible Debt and Completes Long-Term Supply and Finance Agreement with PT Alumindo Light Metal Industry Tbk
FT. LEE, N.J., June 6, 2011 /PRNewswire/ -- Empire Resources (OTCQX: ERSO) today announced the issuance of $12 million of 10% Convertible Senior Subordinated Notes due in 2016. Each $1,000 note entitles the purchaser to receive 215.05 shares of common stock, subject to standard adjustments, at any time before June 1, 2016.
Leon Cooperman participated in the private placement as lead investor, along with several of Empire's board members. Mr. Cooperman commented, "I am pleased to partner with the management and directors of Empire and look forward to the Company's continued growth and prospects."
Empire Resources also announced the signing of agreements with Surabaya, Indonesia-based PT Alumindo Light Metal Industry Tbk, a leading producer of high quality semi finished aluminum products. These agreements call for Empire to provide $10 million in financing to PT Alumindo to enable the expansion of capacity within that Company's production network. The agreements also provide for a long term, multi-year substantial and preferential supply position for Empire from PT Alumindo's premier aluminum rolling mill located in Surabaya.
Empire's CEO Nathan Kahn said, "We are pleased indeed to have been able to conclude these agreements with our long term partner PT Alumindo and its management team. We have worked together with Alumindo for many years and we look forward to expanding this business partnership. These agreements guarantee us a long term supply of high quality material, which will enable us to better serve our customers and marks a further milestone in the growth and strengthening of our relationship with Alumindo."
The notes have not been and will not be registered under the Securities Act of 1933, as amended, or applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. Empire Resources intends to register the common stock issuable upon conversion of the notes under the Securities Act or applicable state securities laws.
Empire Resources, Inc., is a distributor of a wide range of semi-finished metal products to customers in the distribution, transportation, automotive, housing, appliance and packaging industries in the United States, Canada, Australia, New Zealand, Europe and Brazil. It maintains supply contracts with mills around the world.
This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks include, but are not limited to, the ability of the company to grow internally or by acquisition and to integrate acquired businesses, not being able to improve operating margins and efficiencies, changing industry and competitive conditions, and other risks referred to in the Company's publicly available statements and periodic reports.
SOURCE Empire Resources, Inc.
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article