China Information Technology

Case Study: Since the completion of reverse acquisition, has the company you choose other than Orient Paper (I choose this one: NAME:China Information Technology /TICKER:CNIT /EXCHANGE:Nasdaq) raised any capital from the equity market? If so, provide some details about the capital raising transaction such as the form, amount, and procedure of transaction. Note: (You should NOT choose Orient Paper for the case study. Otherwise your mark for the case study question will be reduced by 50%.) All the public information of US firms since 1990 can be found by searching the SEC website via the below link: http://edgar.sec.gov/edgar/searchedgar/companysearch.html. For how to use the SEC website and documents, please check the below web: http://www.sec.gov/edgar.shtml#.U-9mtvmSxME For the market performance and summary company information, you can check yahoo finance (https://au.finance.yahoo.com/) by typing the company name or ticker, or any other finance website. For example, for Orient Paper, see the below link https://au.finance.yahoo.com/q/bc?s=ONP&t=my&l=on&z=l&q=l&c= Background: In recent years, reverse merger (RM hereafter) has become increasingly popular for Chinese firms going public in the US market. During 20072010, there were more than 150 Chinese private operating companies that accessed US markets through reverse takeovers. However, Muddy Waters (www.muddywatersresearch.com), a short seller, published a research report in June 2010 and claimed that Orient Paper, a Chinese RM company, had significantly overstated its revenues and assets by around $30 million since 2009. The detailed report, together with subsequent extensive negative media coverage and significant market reaction, has triggered the wave of regulatory investigations and shareholder litigation against Chinese RM firms.