Henan Zhongpin Inc


Zhongpin Inc. is a China based meat and food processing company with 2007 revenues of $291 million and net income of $18.5 million.

Challenge
Privately-held and needing capital to implement an aggressive growth strategy to distribute its products in over 2500 grocery stores throughout China, Zhongpin retained TerraNova in mid-2005 to implement a financial strategy to access the US public capital markets, and again in late-2007 to co-agent a $50 million private placement for acquistions and capacity expansion.


Solution
Beginning in 2005 TerraNova has provided comprehensive investment banking services to the company, which resulted in an Alternative Public Offering of $27,600,000 with US institutional investors in February 2006 and a co-agented private placement of $50,000,000 in October 2007. Now in over 2500 stores, the company has forecasted 2008 revenues of $490 to $520 million and net income in excess of $30 million.


Global Markets

TerraNova - Meaning New Land or New Earth
TerraNova Capital Partners, Inc., through its TerraNova World Markets venture and its broker-dealer subsidiary TN Capital Equities, Ltd. (jointly referred to as “TerraNova”) provides comprehensive financial, capital formation and merger and acquisition advisory services to companies principally located along the Pacific Rim and in South Asia who seek to gain access the U.S. capital markets.

TerraNova can assist to achieve your company’s objectives by providing a thorough, professional, creative, and customized approach to meet your specific financial and strategic needs.  TerraNova looks forward to meeting with your management in order to establish an investment banking relationship.

China Practice
The current focus of TerraNova’s Global Markets practice is to advise and assist Chinese companies in raising capital in the United States capital markets and, when applicable, to identify strategic investment and partnering opportunities.  The professionals of TerraNova have extensive experience assisting Chinese clients in capital formation, strategic alliances, mergers and acquisitions, and equity and fixed income underwritings.

If Your Company Is Looking To:

-  Raise capital for organic growth or to fund an acquisition or new project
-  If  private, to gain a public listing in the United States in order to access the U.S. capital markets and to create an exit strategy and liquidity for your current shareholders
-  Seek a strategic investment by a company based in the United States
-  Identify a strategic partner

Our China Practice Program Provides:

-  A presence in Mainland China and Hong Kong
-  Access to the United States Capital Market for growth capital
      - We have completed numerous private placements for Chinese companies, totaling in excess of $100 million
      - We have strong relationships with institutional investors who are among the most active investors in private placements for Chinese companies trading on U.S. public markets
-  Arrange strategic investments by United States companies into suitable Chinese companies
-  Search for and assess merger and acquisition opportunities

Advisory Services from TerraNova’s Global Markets Team
Whether your company is considering a Direct Equity Investment (PIPE), an Alternative Public Offering (APO), an initial public offering (IPO), or the identification of a strategic partner/investor, TerraNova can assist and advise on the transaction requirements.

Analyze and define a company’s positioning and strengths
Determine capital requirements
Establish a suitable valuation
Comprehensive financial modeling
Preparation of company background materials including a Confidential Information Memorandum and a presentation for interested parties
Act as the financial advisor and placement agent for a PIPE or APO, or arrange and work with an appropriate underwriter for an IPO
Advice on, and participation in, negotiations with selected prospects and investors
Assistance with legal, accounting, due diligence, final negotiations and other tasks related to closing the transaction/investment
Arrange for suitable market makers, appropriate investment relationship firms and coordinate research coverage

Key Criteria for Suitability:
Strong financial track record (over the past three-five years)
Stability of operating systems and financial controls
Market positioning of its product line
Strong growth potential (projected financial results)
Audited financial statements (three years minimum) in conformance with United States GAAP by an established public auditor acceptable to TerraNova
Strength and depth of management team
Quality and stability of customer base

Strategic Alliances & Investments
The principals of TerraNova have extensive global investment banking and industry experience to assist suitable enterprises to:

Conduct targeted alliance candidate searches
Evaluate suitability based on the client’s strategic objectives, technological, market and capital requirements.
Successfully negotiate the objectives and the initial implementation of the partnering/alliance structure
Structure the transaction
Optimize value
Attract strategic investments

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