AFH News and Events

AFH Plans APOs, $135M in PIPEs

3/26/2008

NEWS: IMMEDIATE RELEASE

Beverly Hills, CA - AFH Holding & Advisory, a Los Angeles investment and consulting firm, signed letters of intent with four separate companies to complete reverse mergers and private placements worth at least $15 million.

Managing Member Amir Heshmatpour said the companies are merging into AFH HOLDINGS I through IV, the first four Form-10 shells in a series of seven that he formed last year.

Two of the companies are based in China, Jiangxi Guixi Xin Copper Co. and KaiKai Cable S&T Co. The other companies are Pennsylvania-based Carlisi Natural Gas and the Colorado-based Fossil Energy Group. AFH will retain a 3% to 7% holding in the post-merger companies.

Jiangxi earned $3 million in net income last year and is projecting $20 million for this year, according to Heshmatpour. KaiKai earned $5 million last year, and Fossil brought in $2.4 million last year and projects it will earn $36 million in 2008, he said. Carlisi did not generate income last year, but based on the company's natural gas reserves, Heshmatpour said it is valued between $150 million and $200 million, and is projecting between $10 million and $14 million in net income for 2008.

Each deal is dependent upon the company completing a relatively large PIPE. Jiangxi must raise a minimum of $60 million; Carlisi is required to bring in at least $25 million; Fossil must raise a minimum of $50 million; and KaiKai must bring in at least $30 million. Even the smallest of these planned placements would be 177% larger than the average PIPE concurrent with a reverse merger, which was about $9 million last year.

Heshmatpour described AFH as an advisory firm that syndicates capital through institutional investment partners. There is also a significant amount of capital, he said, to fund deals internally.

Last month, AFH formed nine new Form-10 shells, AFH Acquisition III through X11. New York law firm Feldman, Weinstein & Smith assisted in forming the new series.

CONTACT INFORMATION
Amir Heshmatpour
Managing Director
amir@afhholdingandadvisory.com
310-300-3431

ABOUT AFH HOLDING & ADVISORY, LLC
AFH Holding & Advisory, LLC is an integrated advisory and consulting firm serving U.S. and international clients who seek the preparation and implementation of APOs, acquisitions or marketing strategies - executed concurrently with the organization and structuring of capital procurement. AFH delivers objective thinking, proven practices and best-of-breed partners to help clients achieve their specific development and financial goals. AFH maintains office in Beverly Hills, California and Shanghai, China.
http://afhholdingandadvisory.com

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AFH: On top of transactions for clients and investors alike.	AFH Plans APOs, $135M in PIPEs 3/26/2008 NEWS: IMMEDIATE RELEASE Beverly Hills, CA - AFH Holding & Advisory, a Los Angeles investment and consulting firm, signed letters of intent with four separate companies to complete reverse mergers and private placements worth at least $15 million. Managing Member Amir Heshmatpour said the companies are merging into AFH HOLDINGS I through IV, the first four Form-10 shells in a series of seven that he formed last year. Two of the companies are based in China, Jiangxi Guixi Xin Copper Co. and KaiKai Cable S&T Co. The other companies are Pennsylvania-based Carlisi Natural Gas and the Colorado-based Fossil Energy Group. AFH will retain a 3% to 7% holding in the post-merger companies. Jiangxi earned $3 million in net income last year and is projecting $20 million for this year, according to Heshmatpour. KaiKai earned $5 million last year, and Fossil brought in $2.4 million last year and projects it will earn $36 million in 2008, he said. Carlisi did not generate income last year, but based on the company's natural gas reserves, Heshmatpour said it is valued between $150 million and $200 million, and is projecting between $10 million and $14 million in net income for 2008. Each deal is dependent upon the company completing a relatively large PIPE. Jiangxi must raise a minimum of $60 million; Carlisi is required to bring in at least $25 million; Fossil must raise a minimum of $50 million; and KaiKai must bring in at least $30 million. Even the smallest of these planned placements would be 177% larger than the average PIPE concurrent with a reverse merger, which was about $9 million last year. Heshmatpour described AFH as an advisory firm that syndicates capital through institutional investment partners. There is also a significant amount of capital, he said, to fund deals internally. Last month, AFH formed nine new Form-10 shells, AFH Acquisition III through X11. New York law firm Feldman, Weinstein & Smith assisted in forming the new series. CONTACT INFORMATION Amir Heshmatpour Managing Director amir@afhholdingandadvisory.com 310-300-3431 ABOUT AFH HOLDING & ADVISORY, LLC AFH Holding & Advisory, LLC is an integrated advisory and consulting firm serving U.S. and international clients who seek the preparation and implementation of APOs, acquisitions or marketing strategies - executed concurrently with the organization and structuring of capital procurement. AFH delivers objective thinking, proven practices and best-of-breed partners to help clients achieve their specific development and financial goals. AFH maintains office in Beverly Hills, California and Shanghai, China. http://afhholdingandadvisory.com