Federman & Sherwood Announces Investigation Of China Advanced Construction Materials Group, Inc.

The law firm of Federman & Sherwood has initiated an investigation into China Advanced Construction Materials Group, Inc. (NASDAQ: CADC) (“CADC” or “Company”) and its Board of Directors with respect to possible breaches of fiduciary duty by the company and its officers and directors, as well as violations of state law, arising from the proposed acquisition of all outstanding shares of CADC common stock by the Company’s largest shareholders, Chairman of the Board and CEO, Xianfu Han (“Han”) and Vice-Chairman of the Board and COO, Weili He (“He”).

On July 26, 2011, CADC announced that it had received an offer from Mr. Han and Mr. He to acquire all outstanding shares of common stock not currently owned by them in a going-private transaction at a proposed price of $2.65 per share, in cash. Mr. Han and Mr. He currently own, cumulatively, approximately 49% of the company’s common stock. Federman & Sherwood is investigating whether the proposed sale of stock will irreparably harm other shareholders if the Company allows the sale of all remaining common stock to be sold to Mr. Han and Mr. He; and, whether the consideration to be paid by Mr. Han and Mr. He for said stock is unfair, inadequate and substantially below the fair market value of CADC shares. According to various financial analysts, a low target price for CADC stock is $4.00 per share, with a high target price of $5.00 per share. Additionally, CADC stock has traded as high as $5.39 per share as recently as January 11, 2011, and has closed above the $2.65 share offer price as recently as May 26, 2011. Federman & Sherwood questions whether the officers and directors have taken all steps necessary to maximize shareholder value in relation with the possible change in control of China Advanced Construction Materials.

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