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SJ Electronics, Inc. (SJEL) Closes
$5.8 Million Financing
June 16, 2008
SJ Electronics, Inc. (OTCBB: SJEL) is pleased
to announce that it has successfully closed a five million, eight
hundred thousand dollar ($5,800,000) convertible notes financing.
The notes have a one year term and bear 15% coupon payable at
maturity. The financing took place approximately three months after
the Company completed a reverse merger transaction with Shing Mei
Enterprises Ltd.
The financing will be used as working capital, allowing SJEL to
increase production to meet demand for orders that the Company has
been receiving. SJEL, which reported $56M in sales and over $4.5M in
net income in 2007, expects to substantially exceed those figures in
2008 through organic growth in its business. As a condition of the
financing, the Company has agreed to a pre-tax net income make good
provision of ten million dollars ($10,000,000) for the year ending
December 31, 2008.
Agatha Shen, Chairperson of SJ Electronics, stated, "In the past six
months, our investment banker, Primary Capital, LLC has raised over
eight million dollars for SJEL, allowing us to expand our business
and take on new customers. We are very pleased with the results of
the financing and are very excited about our future as a US public
company."
About SJ Electronics, Inc. (SJEL)
SJ Electronics, Inc. (OTCBB: SJEL) is an international designer and
manufacturer of a variety of computer components, including wire
harnesses, connectors, and cable assemblies. SJ Electronics, Inc. is
headquartered in Neihu District, Taipei, Taiwan and has five
production and design subsidiaries located within The People's
Republic of China.
Safe Harbor Statement
Forward-Looking Statements. The statements in this press release
regarding SJ Electronics expectations with respect to the expansion
of its business, and the expectation as to sources of funding are
'forward-looking statements' within the meaning of Section 27A of
the United States Securities Act of 1933, as amended, and Section
21E of the United States Securities Exchange Act of 1934. Although
these forward-looking statements reflect the good faith judgment of
management, forward-looking statements are inherently subject to
known and unknown risks and uncertainties that may cause actual
results to be materially different from those discussed in these
forward-looking statements. Readers are urged not to place undue
reliance on these forward-looking statements, which speak only as of
the date of this release. SJ Electronics assumes no obligation to
update these forward-looking statements to reflect any event or
circumstance that may arise after the date of this release, other
than as may be required by applicable law or regulation. Readers are
urged to carefully review and consider the various disclosures,
including the risk factors, made by SJ Electronics, Inc. in its
reports filed with the Securities and Exchange Commission, in
particular under the caption "Risk Factors" of its 8-K filed on
February 14, 2008, which attempt to advise interested parties of the
risks and factors that may affect SJ Electronics business. If one or
more of these risks or uncertainties materialize, or if the
underlying assumptions prove incorrect, SJ Electronics actual
results may vary materially from those expected or projected. The
convertible debt issued in the private placement has not been
registered under the Securities Act of 1933, as amended, and may not
be subsequently offered or sold by the investors in the United
States, except pursuant to an effective registration statement or an
applicable exemption from the registration requirements. SJEL has
agreed to file a registration statement covering the resale by the
investors of the common stock underlying the notes issued in the
private placement.
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