Acquisition of CDC in August, 2006. On August 7, 2006, Chatsworth acquired 100% of the outstanding common stock of CDC through a series of transactions, as follows:
• Investors in a private placement purchased 22 million newly issued shares of common stock and warrants to purchase 11 million shares of Chatsworth for $5,500,000. Upon completion of the private placement the investor shares constituted 87% of the then outstanding stock of Chatsworth without considering warrants or other convertible securities; and
• Chatsworth used proceeds of the private placement to purchase all of the shares of CDC for $4,000,000 and additional consideration consisting of the issuance of 250,000 shares of Chatsworth common stock, a $2,000,000 promissory note, and the payment of $200,000 to the sellers for reimbursement for certain taxes.
Our principal executive offices are located at 20710 Lassen Street, Chatsworth, California 91311.
