Institutional investor Ironridge Global Partners LLC recently announced it had launched a China based initiative to fund public companies. The firm makes direct equity investments in microcap public companies.
The new fund would focus on investments in companies that are publicly listed on the NASDAQ, NYSE MKT, OTCQB or OTCQX as well as US companies that have facilities, operations or clients in China.
One of the first investments done by the firm is a USD5 million financing project for L&L Energy Inc. The recipient is a publicly listed and traded company on the NASDAQ Global Select Market. Its main business is the production, processing and sale of coal in China. Included in the agreement would be the payment of RMB25 million to Guizhou Qian Hong Mineral Resource Consulting Services Co Ltd, which is based out of Guiyang, China, for the supply of coal to L&L Energy.
According to Ironridge Global Partners LLC Managing John C. Kirkland, "China is the world's second largest economy, and has been among the world's fastest growing economies for three decades," commented John C. Kirkland, Managing Director of Ironridge Global Partners, LLC. As credit availability in China contracts, we view the market as a tremendous investment opportunity, especially in the small-cap and micro-cap sectors, and we are aggressively seeking additional Chinese investments."
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