This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

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.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community


Chart of I:DJI
DOW 16,247.72 +189.37 1.18%
S&P 500 1,932.32 +18.47 0.97%
NASDAQ 4,691.4360 +55.3310 1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs