Sutor Tech (SUTR) Prices 2.74M Common Offering at $2.70/Share

Sutor Technology Group Limited (NASDAQ: SUTR) today announced that it has entered into agreements with several institutional investors for a direct placement of up to 2,740,000 shares of common stock at a price of $2.70 per share.

The gross proceeds to the Company from this offering will be approximately $7.4 million. In addition to the issuance of the common shares, the Company will issue warrants to the investors to purchase up to approximately 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 intends 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. At the present time, Sutor has not entered into any agreements in principle relating to any material acquisition.

Roth Capital Partners, LLC acted as the exclusive placement agent for the transaction.