China LianDi Clean Technology Engineering Ltd.  entered the US public arena last week with a bang, finishing its first week trading as a US public company up 82.8%, gaining 68% on Friday alone.  China LianDi completed a merger with Remediation Services on March 1, raising $27.5 million in the process.

The company generated $7.1 million in net income on revenue of $31.3 million for the year ending March 31, 2009, boasting a 360% gain in revenue and 196% in net income over the prior year's results in the process.
Financing was provided by TriPoint Global Equities, LLC, a botique investment banking firm headquartered in New York that boasts an expertise in providing financings in combination with a merger into a public company. 

The private placement, as it was referred to in a March 1, 2010 announcment, consisted of 787,342 investment units (the "Units"). The Units include a total of 787,342 ordinary common shares, 7,086,078 shares of Series A preferred stock convertible into ordinary common shares, in addition to 1,968,363 Class A Warrants with an exercise price of $4.50 per share and 1,968,363 Class B Warrants with an exercise price of $5.75. 

But what the announcement didn't reveal was that the A Preferred shares have a Conversion price of $3.50 per share, making the sharp rise in price of China LianDi's common shares a jackpot.  But perhaps the clever financing arrangement as disclosed in a March 4, 2010 SEC 8-K filing will just as much benefit China LianDi.

According to the Company the funds are driving the construction of a new delayed coking plant in China that will help combat pollution.  The plant is also expected to be in operation by the end of this year and holds great promise in the development overall.

Government incentives and tax benefits are helping China LianDi to fill a badly needed segment of the petroleum refining sector in China which forecasts an increase from 6.4 mbpd in refining capacity to 8.8 mbpd by 2010. 

Currently China has 53 oil refineries, which could give China LianDi a real edge considering none of the plants have technology in use that can combat pollution while improving product results.

China LianDi Chairman, Mr. Jianzhong Zuo, stated: "The focus on introducing clean technology solutions to the petroleum and petrochemical industries has created a significant growth opportunity and we intend to leverage our relationships to deliver an industry leading product for oil refiners across China."