Foshan Announces Close of $4.1 Million Bridge Financing

GUANGDONG PROVINCE, China, Feb. 22 /PRNewswire-Asia-FirstCall/ — Foshan S.L.P. Special Materials Co., Ltd. (“Foshan”), a producer of proprietary nonwoven fabrics based in Foshan, China, announced today that on February 12, 2010, it closed a $4,140,000 bridge financing, through the issuance of 10% convertible notes.

Foshan intends to use the proceeds from the financing for working capital and to begin expanding its production capacity of Polyphenylene-sulfide, or PPS, which is the premier material used in filter bags for industrial and energy based carbon emissions control.

Longboard Capital Advisors LLC, a Santa Monica based fund focused on cleantech and alternative energy investments, and Jayhawk Capital Management LLC, a China centric fund, were the lead investors. Primary Capital LLC acted as Placement Agent in the financing.

Jie Li, CEO of Foshan, stated, “Our management team is very pleased by the Company’s ability to readily access the capital markets with quality institutional investors who both understand and embrace our vision and growth potential. This financing will allow us to leverage our technological prowess to become a leading producer of specialty ‘Cleantech’ nonwoven filters, which are used in coal burning utilities and address a number of industry applications. The market for these filters is rapidly expanding due to the Chinese government’s mandate to reduce carbon output and clean up the environment. We are grateful for the support of our new investors, as well as the continued support of our banker, Primary Capital.”

Further details regarding the Company and the financing are filed as part of the Company’s 8-K and other public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission’s (“SEC”) EDGAR database.

About Foshan S.L.P. Special Materials Co., Ltd. ( http://www.jinlongnonwoven.com )

Foshan is a premier producer of technologically advanced nonwovens in China. The Company has developed a proprietary, innovative technology which relates to the production of Polyphenylene-sulfide, or PPS, the most effective material used in filter bags for carbon emissions control. Foshan’s PPS product provides a unique solution to a major environmental issue in China, which is currently being addressed by various government mandates and stricter enforcement. In addition, the attractive price point provides an economic incentive for rapid customer adoption.

Source prnewswire.com

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