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Yasheng ECO-Trade Secures Up to $5 Million in Preferred Financing

^{Published on 2010-01-04 03:40:19 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--[ Yasheng Eco-Trade Corporation ] (the "Company") (OTCBB: YASH) today announced the Company has entered into a preferred stock purchase agreement with Socius Capital Group, LLC, a Delaware limited liability company, doing business as Socius Life Sciences Capital Group, LLC. Pursuant to the Purchase Agreement, the Company will receive up to $5 million in capital.

"The completion of the financing is an important component to the Company's 2010 growth strategy and Socius Capital Group has shown their confidence in the Company and our ability to execute on the projects we are about to commence."

The Company agreed to sell up to 500 shares of its Series D Preferred Stock, in one or more tranches from time to time. The tranches will be sold at the Company's sole discretion, at a purchase price of $10,000 per share, for an aggregate purchase price of up to $5 million. With each tranche, Socius will also receive five-year warrants to purchase that number of shares of the Company's common stock equal to 135% of the value of preferred stock delivered in such tranche. The exercise price of such warrants will equal the closing bid price of the Company's common stock on the date the Company provides notice of such tranche.

Pursuant to the Purchase Agreement the Company will pay a commitment fee to Socius equal to 5% of the total commitment and will use its best efforts to file a registration statement with the Securities and Exchange Commission for the resale of all shares of common stock issuable pursuant to the exercise of the warrants.

The financing will provide the Company with the capital needed to further develop projects that are in development.

"We are pleased with the structure and terms of the agreement with Socius Capital Group," said Yossi Attia, President and CEO of the Company. "The completion of the financing is an important component to the Company's 2010 growth strategy and Socius Capital Group has shown their confidence in the Company and our ability to execute on the projects we are about to commence."

For further disclosure relating to this financing, please refer to our Form 8-K filed with the Securities and Exchange Commission, at [ http://www.sec.gov/ ] that was filled by the Company on December 31, 2009.

About Yasheng ECO-Trade Corporation

Headquartered in Los Angeles, California, Yasheng ECO-Trade Corporation's business is the development of a logistic center in the Southern California as well as the identification and acquisition of undervalued assets within emerging industries for the purpose of consolidation and development of these businesses and sale if favorable market conditions exist.

Forward-Looking Statements

Under The Private Securities Litigation Reform Act of 1995: The statements in the press release that relate to the Company's expectations with regard to the future impact on the Company's results from new products in development are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Readers are urged not to place undue reliance on the forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this release. Additional information on risks and other factors that may affect the business and financial results of Yasheng ECO-Trade Corporation can be found in the filings of Yasheng ECO-Trade Corporation with the U.S. Securities and Exchange Commission, which are available for review at [ www.sec.gov ] under "Search for Company Filings."