Jon R. Carnes, President. Mr. Carnes has over 17 years experience investing in a broad range of industries and companies of all sizes. From 1992 to 2000 he managed his own stock trading business, becoming the largest private client of two of the nation's largest electronic brokerage houses. In 2001 he transitioned from trading to making long-term value investments. In 2004 the company adopted the name "Eos", focusing on China and becoming one of the top performing funds. Mr. Carnes is a Phi Beta Kappa graduate of the University of South Carolina with a degree in business economics.

Kun Huang, Asia Region Manager. Mr. Huang is the Chief Investment Analyst at Eos overseeing all of the fund’s activities. His responsibilities are investment evaluation, negotiation and due diligence. Prior to joining Eos Mr. Huang was the founder and CFO of AI International, a Chinese/Canadian import/export business. Mr. Huang obtained his double major accounting and finance degree with honors from the University of British Columbia.

Copyright 2004-2010 Eos Asia Investments Ltd.

4/9/2010, Eos completed the doubling of its staff in Chengdu, Sichuan, China. Eos continues to focus on western China, especially Chengdu and Xi'an as sources for profitable investment opportunities in the $25 million to $300 million range.

 

2/12/2010, Eos arranged and funded a $2,000,000 bridge loan to Chengdu based Southwest China Cement, to repay existing debt in advance of a $20 million high-yield debt plus warrants financing to fund the completion of its Ziping cement plant expansion at the heart of the 2008 earthquake devastated region.

 

12/24/2009, Eos arranged and funded a $1,000,000 bridge loan to MDRNA Inc., (NASDAQ: MRNA) secured by the intellectual property and equipment of the company. MDRNA is a biotechnology company focused on developing therapeutics based on RNA interference (RNAi) techonology.

 

10/26/2009, Eos made a private equity investment in Shandong Longkang Fruity Juice Co., the exclusive producer of super-premium pears and juice concentrate from the Five Dragon River in Laiyang City.

 

8/28/2009, Eos completed open market and block purchases of Emisphere Technologies Inc. (OTCBB: EMIS) shares representing approximately 20% of its funds. Emisphere is in late phase III development of an oral version of salmon calcitonin for Novartis, a multi-billion dollar opportunity.

 

5/17/2009, Eos Asia Investments completed the second closing of its largest investment to date in Southwest China Cement (formerly Sichuan Zhiquan Cement Group), a cement manufacturer in Chengdu. The $40 million convertible preferred stock financing funded technological upgrade and expansion of Zhiquan's existing plants.

 

10/25/2008, Eos successfully advised and completed the simultaneous exercise of warrants, short-term debt and equity financing totaling $750,000 allowing China Wind Systems (Amex: CWS) to buy rolled ring manufacturing equipment.

 

9/26/2008, Eos Asia Investments closed its largest investment to date in Southwest China Cement (formerly Sichuan Zhiquan Cement Group), a cement manufacturer in Chengdu. The $40 million convertible preferred stock financing will fund technological upgrade and expansion of Zhiquan's existing plants. Click here for the complete press release.

 

5/22/2008, Eos's parent company, One Horizon Foundation, provided emergency financial assistance to earthquake victims in Baihua village near the Zhiquan Ziping cement factory.

 

4/29/2008, Eos completed the block trade purchase of $2 million worth of West China Cement (WCC.L - London Stock Exchange) from a failed hedge fund. WCC's stock had lost half its value due to the hedge fund selling. After Eos bought the shares the stock rebounded and the company successfully completed a $60 million investment from Credit Suisse. 

1/20/2008, Eos researched, advised and invested in the $10.0 million preferred stock investment in Chengdu based Tianyin Pharmaceuticals, a leading manufacturer and supplier engaged in the development, manufacturing, marketing and sale of modernized traditional Chinese medicines and other pharmaceuticals in China. For more information, please visit http://www.tianyinpharma.com/

 

5/31/2007, Eos researched, advised and invested in the $3.4 million preferred stock investment in China Education Alliance, a leading educational service company offering high-quality online education materials and on-site training and tutoring to families, provincial education officials, administrators, schools and teachers in China . We distribute online test preparation materials, researchers' materials, study guides, audio recordings, and provide vocational skills and certification training. For more information, please visit http://www.chinaeducationalliance.com

Southwest China Cement

After receiving approval to expand its capacity by building two additional cement production lines, Sichuan Zhiquan Cement Group approached our Chengdu office seeking financing. Zhiquan needed $40M first round financing to complete two modern rotary clinker production lines. Bank financing was out of the question since Zhiquan was not big enough to get favorable loans. Chairman Chen Zhiquan commented, "Eos offered us the investment capital we needed on reasonable terms. Eos not only invested but also managed the entire process. As my company's needs grew, Eos secured the investment and support of Merrill Lynch, one of the largest investment banks in the world."

The $40M investment in Zhiquan closed on September 26, 2008. What was remarkable about the investment was the fact that it was made at the original agreed on valuation decided in January, prior to the Chinese stock market's more than 50% fall. Eos honored its agreed valuation and saw no reason to demand a lower valuation just because the Chinese market had collapsed. Eos invests strictly based on value and growth potential. While Zhiquan's relative value had fallen, its growth potential had become more certain and was then worth even more.

Furthermore, when the Wenchuan earthquake destroyed one of Zhiquan's plants late in the investment process, Eos's president, Jon Carnes, immediately visited the site of the destruction and pledged to do everything possible to complete the investment on the original agreed terms. Despite the loss of earnings, Eos saw the long term potential to rebuild the region and advised investors to fund the investment at the original agreed valuation and also donated money to support the employees who had lost their homes.

As expected, Zhiquan's first round of financing was a lengthy and difficult process. The company had to be restructured into an entity suitable for foreign investment. Chairman Chen came to realize that "despite the extremely complicated process, Eos always maintained great confidence of the ultimate success and now that the process is complete our second round of financing will be much easier and I am positioned to have access to all the capital I need to become the dominant cement manufacturer in the region".

Eos is also preparing Zhiquan for an IPO either in Hong Kong or America and is confident of receiving eventual government approval. Eos president Jon Carnes explains, "I am confident that CSRC will again allow foreign IPO's and Zhiquan will be one of the first due to the company's great performance." Sow in spring and Reap in autumn. Sichuan Zhiquan Cement Group and investors together expect the harvest season.

Background

"Eos" is the Greek name of the goddess of the dawn, responsible for providing the morning dew that nourishes the growing plants. Since 2004, Eos has focused on first and second round investments in small and mid sized companies in China. Having completed over 25 investments to date, Eos has realized tremendous success exemplified by its 2008 structuring of a $40 million investment in Southwest China Cement. The proceeds of this investment were used to build cement plants near the earthquake damaged areas around Chengdu in Sichuan province. Today Eos manages its investments from offices in both the U.S. and China.

 

Commitment

As a long term investor, our investment is only the first stage of our relationship with portfolio companies. We design long term growth and financing plans for each company. Implementation is overseen by our local professionals who introduce and oversee our most trusted lawyers, accounting consultants and auditors. Together our teams assure the most successful, timely and efficient funding. These same teams continue to assist portfolio companies as they prepare reports for investors, develop internal controls and corporate governance plans sufficient to attract larger financial support and higher valuation.

Eos focuses on finding companies with superior management performance, sustainable market share and high return on invested capital. These three elements make up what Warren Buffett calls a "franchise" or business that is protected from competition due to barriers to new entrants. A franchise is therefore said to have durable competitive advantages.

The best franchises benefit from one or more competitive advantages. First and foremost are demand oriented advantages such as customer preference, habit, captivity, switching costs, or lack of substitutes. Second are supply advantages such as cost advantages, geography, technology, patents, or experience. Third are economies of scale whereby the largest company due to high fixed overhead and leading market share enjoys substantially lower per unit production costs than its smaller competitors. Companies that lack significant barriers to entry and must therefore compete on a level playing field are still good investments when management is focused on maximizing operational efficiency. Companies fitting any of these criteria should be able to earn high returns for investors.

Public or Private Equity

Eos makes private investments in companies where management agrees to execute a plan leading to higher liquidity and valuation. Our initial investment should be at least $15 million followed by larger investment rounds over a one to three year period. The liquidity plan should involve an IPO on a suitable exchange (anywhere in the world) or a merger or acquisition.

Eos actively invests in private placements or PIPE's in existing publicly traded companies. Eos also purchases founder's shares and other large share blocks from existing investors. Additionally, we invest in private companies simultaneous with the execution of a reverse takeover (RTO) by an exchange traded shell company.

In any scenario, our experienced professionals design and guide the entire process ensuring a smooth and timely funding of each company's capital requirements. We make a long term commitment to finance the growth of suitable targets. Through long term mutual cooperation we will achieve our shared goals. Experience has shown that with the support of investors and the respect of management, our portfolio companies will always achieve the highest recognition and success in both China and the world.

Warren Buffett

Warren Edward Buffett (born August 30, 1930, in Omaha, Nebraska) is an American investor, businessman and philanthropist. He is regarded as one of the world's greatest investors and is the largest shareholder and CEO of Berkshire Hathaway. With an estimated net worth of around US$62 billion, he was ranked by Forbes as the richest person in the world as of February 11, 2008.

Often called the "Oracle of Omaha," Buffett is noted for his adherence to the value investing philosophy and for his personal frugality despite his immense wealth.

Buffett was featured in the critically acclaimed documentary, "IOUSA", made possible by an investment from our parent company. Our president, Jon Carnes, got to meet Warren in Omaha at the movie premiere. Jon thanked Warren for his involvement in the project and Warren offered his congratulations on the success.