SOURCE: China Vesting

July 01, 2011 13:57 ET

China Vesting Issues Update on China America Holdings

LOS ANGELES, CA--(Marketwire - Jul 1, 2011) - China Vesting, a leading investment newsletter dedicated to Chinese public companies listed in the United States, today announced that is has issued an update on Shanghai-based China America Holdings (OTCBB: CAAH). The update is available here: http://www.chinavesting.com/top-china-stock-pick-articles/China-America-Holdings-Increase-Net-Income-From-Zero-to-73-Million-2011-07-01.htm

China America Holdings announced yesterday that it has entered into a definitive share exchange agreement to acquire a 100% equity stake in China Ziyang Technology Company for a combination of a convertible promissory note and common stock valued at approximately $16 million. Upon completion of the transaction and assuming full conversion of the note, the new acquisition will own approximately 79.6% of the then issued and outstanding shares of China America Holdings.

As of May 20, 2011 China America had 200,710,792 shares of common stock issued and outstanding. Based on yesterday's company press release China Vesting calculates that 783,165,639 shares will be issued to China Ziyang, increasing the total number of shares outstanding to approximately 983,876,431. Based on yesterday's closing price of $0.018 the current market capitalization of the combined entity is $17,709,775.

According to China America, China Ziyang's estimated pro forma net income for 2010 is $7.3 million. 2011 estimated net income is expected to be at least 20% higher which would be $8.76 million. The current valuation of China Ziyang is a trailing 2010 Price to Earnings Ratio of 2.42 and a 2011 forward Price to Earnings Ratio of 2.02.

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China Vesting researches 500 of the top U.S. Listed Chinese Public Companies and tracks the best 100 with state-of-the-art performance benchmarks. China Vesting is based in Dongguan China, an industrial city located in the Pearl River Delta. Dongguan borders the provincial capital of Guangzhou to the north, Huizhou to the northeast, Shenzhen to the south, and the Pearl River to the west. Our network consists of Chinese officials, investment bankers, venture capitalists, scholars, academics and most importantly entrepreneurs that track China Stocks.

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