China America Holdings Inc. (OTC: CAAH) today announced the signing of a definitive agreement with Best Alliance Worldwide Investments Ltd. under which it will acquire a 100% equity stake in Hong Kong-based China Ziyang Technology Company for a combination of a convertible promissory note and common stock valued at $16 million.

The announcement sparked a huge rally in China America Holdings shares. At last check, the penny stock was trading 275% higher at $0.0150 after touching a 52-week high of $0.03.

On completion of the transaction, Best Alliance will have a 79.6% stake in China America Holdings, if it fully converts the note.

Following the acquisition, Ziynag Technology will become a wholly owned subsidiary of China America Holdings. Ziyang Technology is engaged in the manufacturing and distribution of porcelain tiles through its subsidiary, Ziyang Ceramics. In 2010, Ziyang Ceramics posted net income of $7.3 million on revenue of $31.1 million and experienced top and bottom line growth of more than 44% over 2009.

China America Holdings CEO, Shaoyin Wang, said that the management team at Ziyang Ceramics demonstrated its ability to achieve profitable growth over the past two years and the company believes they have the right plan in a growing industry to accelerate that growth to become a leading player in this industry in China.

• This newsletter has been helping traders make a killing on CAAH. Click here for a 25% discount offer.
• See todays top stock picks and market analysis
• Need fast service and cheap rates from a broker? Buy stock online at my favorite brokerage
• Want more? Check out the message board buzz for CAAH
• See what newsletters are recommending this stock pick
• Get breaking news alerts on these stocks:

Similar Posts:

• Hot Nasdaq Stock; China Automotive Shares soar on Optimistic Earnings Forecast
• Abtech Holdings soars on Progress of New Wastewater Treatment Program
• The Largest Employers in the World
• Stocks Selling Below Cash per Share
• Top Malaysia Stocks
• Hot Stock Alert – Pandora Media Shares Rallying on Debut
• Stocks Under $3? On the New York Stock Exchange?