Annual report pursuant to section 13 and 15(d)

Warrant Liability

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Warrant Liability
12 Months Ended
Dec. 31, 2011
Warrant Liability Disclosure [Abstract]  
Warrant Liability Disclosure [Text Block]

Note 7 — Warrant Liability

 

In accordance with the June 2011 Offering and sale of Insider Warrants, the Company issued five-year warrants to purchase an aggregate of 8,966,667 ordinary shares at an initial exercise price of $12.00 per share. The terms of the warrants contain a restructuring price adjustment provision, such that, in the event the Company completes a business combination subsequent to the initial Business Combination that results in the Company shares no longer being listed on a national exchange or the OTC Bulletin Board, the exercise price of the warrants will decrease by formula that causes the warrants to not be indexed to the Company’s own shares. Management used the quoted market price for the valuation of the warrants to determine the warrant liability to be $4,483,334 and $0 as of December 31, 2011 and 2010, respectively. This valuation is revised on a quarterly basis until the warrants are exercised or they expire with the changes in fair value recorded in the statement of operations.