Unassociated Document


    


    China
Linen Textile Industry Announces Completion of Convertible Note
Financing

    


    LANXI
COUNTY, China, Nov. 4, 2010 /PRNewswire-Asia-FirstCall/ -- China Linen
Textile Industry, Ltd. (OTC Bulletin Board: CTXIF, "China Linen" or the
"Company"), a China-based company engaged in the production and sale of linen
yarn and various types of linen fabric, today announced that it has consummated
a private placement to a group of institutional and accredited investors for
approximately $7 million of 7.5% notes that are convertible into the Company's
ordinary shares. The offering will result in gross proceeds of approximately
$6.4 million to the Company.

    


    The 7.5%
note carries a fixed conversion price of $1.52, which is equal to 115% of the
10-day volume weighted average price prior to November 3, 2010, and carries a
2-year term. Assuming full conversion of the notes issued to investors, the
company would expect to issue approximately 4,634,869 ordinary shares. There
were no warrants issued in this offering. The total outstanding ordinary
shares of the Company after conversion and exercise would be approximately
24,849,872 shares. Net proceeds from the offering are expected to fund the
acquisition of Lanxi Tianxianfang Linen Co., Ltd, which includes a 23,358 square
foot building in Lanxi Town, China, a spinning production line with an annual
capacity of approximately 620 tons of linen yarn, and a bleaching factory with
annual capacity to bleach 10 million meters of linen fabric., which the Company
is currently leasing.

    


    Rodman
& Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc.
(Nasdaq: RODM), acted as placement agent for the transaction.

    


    About
China Linen Textile Industry, Ltd.

     

    China
Linen Textile Industry, Ltd. ( http://www.chinalinen.cc/
) is principally engaged in the production and sale of linen yarn and various
types of linen fabric. The Company is also involved in consultation and R&D
related to linen technology and linen products. The Company carries on all of
its business activities through its subsidiary, Heilongjiang Lanxi Sunrise Linen
Textile Industry Co., Ltd. ("Lanxi Sunrise"), established in June 2002 and
located in Lanxi County, the "Homeland of Flax in China," near Harbin City in
China. Lanxi Sunrise has one yarn-spinning factory and two fabric weaving
factories in its 28,000 square meters of building area with a staff of 1,500 and
310 sets of world-class, advanced production machinery. Annual production
capacity totals approximately 1,600 tons with 50 different types of yarn and 8
million meters of fabric with 110 types. Approximately 55 percent of its
products are exported to more than 10 countries.

    


    Forward-looking
statements:

     

    The above
news release contains forward-looking statements. The statements contained in
this document that are not statements of historical fact, including but not
limited to, statements identified by the use of terms such as "anticipate,"
"appear," "believe," "could," "estimate," "expect," "hope," "indicate,"
"intend," "likely," "may," "might," "plan," "potential," "project," "seek,"
"should," "will," "would," and other variations or negative expressions of these
terms, including statements related to expected market trends and the Company's
performance, are all "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995 and involve a number of risks
and uncertainties. These statements are based on assumptions that management
believes are reasonable based on currently available information, and include
statements regarding the intent, belief or current expectations of the Company
and its management. Prospective investors are cautioned that any such
forward-looking statements are not guarantees of future performances, and are
subject to a wide range of external factors, uncertainties, business risks, and
other risks identified in filings made by the company with the Securities and
Exchange Commission. Actual results may differ materially from those indicated
by such forward-looking statements. The Company expressly disclaims any
obligation or undertaking to update or revise any forward-looking statement
contained herein to reflect any change in the company's expectations with regard
thereto or any change in events, conditions or circumstances upon which any
statement is based.

    


    
      
         

      

      
         

        
          

        

      

      
         

      

    

    


    
      	
                  For further information,
      contact:

            
	 
      
	
                  China
      Linen Textile Industry, Ltd.

            
	
                   Ms.
      Jodie Zheng Wehner, CFO

            
	
                   Tel:   +1-310-890-8048

            
	
                   Email:
      jodiewehner@chinalinen.cc

            
	 
      
	
                   Mr.
      Xiao Weixing, IR Manager

            
	
                   Tel:   +86-137-9600-2690

            
	
                   Email:
      xiaoweixing@chinalinen.cc

            
	 
      
	
                  HC
      International, Inc.

            
	
                   Scott
      Powell, Vice-President

            
	
                   Tel:   +1-917-721-9480

            
	
                   Email:
      scott.powell@hcinternational.net

            
	
                   Web:   http://www.hcinternational.net

            


    

    


    


    CONTACT:
China Linen Textile Industry, Ltd., Ms. Jodie Zheng Wehner, CFO,
+1-310-890-8048, jodiewehner@chinalinen.cc, Mr.
Xiao Weixing, IR Manager, +86-137-9600-2690, xiaoweixing@chinalinen.cc;
HC International, Inc., Scott Powell, Vice-President, +1-917-721-9480, scott.powell@hcinternational.net