UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------
SCHEDULE 13G
Under the Securities Exchange Act of 1934
China Precision Steel, Inc.
(Name of Issuer)
Common Stock, $0.001 par value per share
(Title of Class of Securities)
16941J106
(CUSIP Number)
May 20, 2008
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this
Schedule is filed:
[ ] Rule 13d-1(b)
[X] Rule 13d-1(c)
[ ] Rule 13d-1(d)
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*The remainder of this cover page shall be filled out for a reporting
person's initial filing on this form with respect to the subject class of
securities, and for any subsequent amendment containing information which would
alter the disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be
deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934 ("Act") or otherwise subject to the liabilities of that section of the
Act but shall be subject to all other provisions of the Act (however, see the
Notes).
Page 1 of 12 Pages
CUSIP No. 16941J106 13G Page 2 of 12 Pages
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(1) NAMES OF REPORTING PERSONS
Hudson Bay Fund, LP
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ----------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
1,140,000 shares of Common Stock (See Item 4)
OWNED BY ----------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ----------------------------------------------------------------
PERSON WITH: (8) SHARED DISPOSITIVE POWER
1,140,000 shares of Common Stock (See Item 4)
-----------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,140,000 shares of Common Stock (See Item 4)
-----------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
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(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
2.48%
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(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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CUSIP No. 16941J106 13G Page 3 of 12 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Hudson Bay Overseas Fund, Ltd.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Cayman Islands
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ----------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
2,711,110 shares of Common Stock (See Item 4)
OWNED BY ----------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ----------------------------------------------------------------
PERSON WITH: (8) SHARED DISPOSITIVE POWER
2,711,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
2,711,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
5.91%
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(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
CO
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CUSIP No. 16941J106 13G Page 4 of 12 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Hudson Bay Capital Management, L.P.
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ----------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
3,851,110 shares of Common Stock (See Item 4)
OWNED BY ----------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ----------------------------------------------------------------
PERSON WITH: (8) SHARED DISPOSITIVE POWER
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.39%
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(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
PN
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CUSIP No. 16941J106 13G Page 5 of 12 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Sander Gerber
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ----------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
3,851,110 shares of Common Stock (See Item 4)
OWNED BY ----------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ----------------------------------------------------------------
PERSON WITH: (8) SHARED DISPOSITIVE POWER
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.39%
-------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP No. 16941J106 13G Page 6 of 12 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
Yoav Roth
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(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
Israel
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NUMBER OF (5) SOLE VOTING POWER
0
SHARES ----------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
3,851,110 shares of Common Stock (See Item 4)
OWNED BY ----------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ----------------------------------------------------------------
PERSON WITH: (8) SHARED DISPOSITIVE POWER
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.39%
-------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP No. 16941J106 13G Page 7 of 12 Pages
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(1) NAMES OF REPORTING PERSONS
I.R.S. IDENTIFICATION NO. OF ABOVE PERSONS (ENTITIES ONLY)
John Doscas
-------------------------------------------------------------------------------
(2) CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
(a) [X]
(b) [ ]
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(3) SEC USE ONLY
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(4) CITIZENSHIP OR PLACE OF ORGANIZATION
United States
-------------------------------------------------------------------------------
NUMBER OF (5) SOLE VOTING POWER
0
SHARES ----------------------------------------------------------------
BENEFICIALLY (6) SHARED VOTING POWER
3,851,110 shares of Common Stock (See Item 4)
OWNED BY ----------------------------------------------------------------
EACH (7) SOLE DISPOSITIVE POWER
0
REPORTING ----------------------------------------------------------------
PERSON WITH: (8) SHARED DISPOSITIVE POWER
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(9) AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
3,851,110 shares of Common Stock (See Item 4)
-------------------------------------------------------------------------------
(10) CHECK BOX IF THE AGGREGATE AMOUNT
IN ROW (9) EXCLUDES CERTAIN SHARES (SEE INSTRUCTIONS)
[ ]
-------------------------------------------------------------------------------
(11) PERCENT OF CLASS REPRESENTED
BY AMOUNT IN ROW (9)
8.39%
-------------------------------------------------------------------------------
(12) TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)
IN
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CUSIP No. 16941J106 13G Page 8 of 12 Pages
Item 1.
(a) Name of Issuer
China Precision Steel, Inc., a Delaware corporation (the "Company")
(b) Address of Issuer's Principal Executive Offices
8th Floor, Teda Building, 87 Wing Lok Street, Sheungwan
Hong Kong, The People's Republic of China
Item 2(a). Name of Person Filing
This statement is filed by the entities and persons listed below, who
are collectively referred to herein as "Reporting Persons" with
respect to the shares of Common Stock (as defined in Item 2(d)) of the
Company, that the Hudson Bay Funds (as defined below) have agreed to
purchase pursuant to that certain Amended and Restated Securities
Purchase Agreement (the "Purchase Agreement"), dated as of March 20,
2008 by and among Wo Hing Li, Hudson Bay Fund, LP, Hudson Bay Overseas
Fund, Ltd. and Enable Growth Partners LP.
FUNDS
(i) Hudson Bay Fund, LP, with respect to the shares of Common Stock
it has agreed to purchase pursuant to the Purchase Agreement.
(ii) Hudson Bay Overseas Fund, Ltd. with respect to the shares of
Common Stock it has agreed to purchase pursuant to the Purchase
Agreement.
INVESTMENT MANAGER
(iii) Hudson Bay Capital Management, L.P., (the "Investment Manager"),
with respect to the shares of Common Stock that Hudson Bay Fund,
LP and Hudson Bay Overseas Fund, Ltd. (together, the "Hudson
Bay Funds") have agreed to purchase pursuant to the Purchase
Agreement and to which the Investment Manager serves as
investment manager.
REPORTING INDIVIDUALS
(iv) Mr. Sander Gerber ("Mr. Gerber"), with respect to the shares of
Common Stock that the Hudson Bay Funds have agreed to purchase
pursuant to the Purchase Agreement.
(v) Mr. Yoav Roth ("Mr. Roth"), with respect to the shares of Common
Stock that the Hudson Bay Funds have agreed to purchase pursuant
to the Purchase Agreement.
(vi) Mr. John Doscas ("Mr. Doscas"), with respect to the shares of
Common Stock that the Hudson Bay Funds have agreed to purchase
pursuant to the Purchase Agreement.
Mr. Gerber, Mr. Roth and Mr. Doscas are collectively referred to as
the "Reporting Individuals."
The Investment Manager serves as the investment manager to each of the
Hudson Bay Funds. Each of the Reporting Individuals is an executive
officer of the Investment Manager.
Item 2(b). Address of Principal Business Office or, if none, Residence
The address of the principal business office of each of the Reporting
Persons is:
CUSIP No. 16941J106 13G Page 9 of 12 Pages
120 Broadway, 40th Floor
New York, NY 10271
Item 2(c). Citizenship
Citizenship is set forth in Row 4 of the cover page for each Reporting
Person hereto and is incorporated herein by reference for each such
Reporting Person.
Item 2(d) Title of Class of Securities
Common Stock, $0.001 par value per share ("Common Stock")
Item 2(e) CUSIP Number
16941J106
Item 3. If this statement is filed pursuant to ss.ss.240.13d-1(b) or
240.13d-2(b) or (c), check whether the person filing is a:
(a) [ ] Broker or dealer registered under Section 15 of the Act (15 U.S.C. 78o).
(b) [ ] Bank as defined in Section 3(a)(6) of the Act (15 U.S.C. 78c).
(c) [ ] Insurance company as defined in Section 3(a)(19) of the Act (15 U.S.C.
78c).
(d) [ ] Investment company registered under Section 8 of the Investment
Company Act of 1940 (15 U.S.C. 80a-8).
(e) [ ] An investment adviser in accordance with ss.240.13d-1(b)(1)(ii)(E);
(f) [ ] An employee benefit plan or endowment fund in accordance with
ss.240.13d-1(b)(1)(ii)(F);
(g) [ ] A parent holding company or control person in accordance with
ss.240.13d-1(b)(1)(ii)(G);
(h) [ ] A savings association as defined in Section 3(b) of the Federal
Deposit Insurance Act (12 U.S.C. 1813);
(i) [ ] A church plan that is excluded from the definition of an investment
company under Section 3(c)(14) of the Investment Company Act of 1940 (15
U.S.C. 80a-3);
(j) [ ] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).
Item 4. Ownership
Provide the following information regarding the aggregate number and
percentage of the class of securities of the issuer identified in Item 1.
The information required by Items 4(a) - (c) is set forth in Rows 5 - 11 of
the cover page for each Reporting Person hereto and is incorporated herein
by reference for each such Reporting Person. The Company's Quarterly Report
for the quarterly period ended March 31, 2008 filed on Form 10-Q on May 16,
2008, indicates that as of May 15, 2008, there were 45,896,288 shares of
Common Stock outstanding. In addition to the (i) 1,140,000 shares of Common
Stock that Hudson Bay Fund, LP has agreed to purchase pursuant to the
Purchase Agreement and (ii) 2,711,110 shares of Common Stock that Hudson
Bay Overseas Fund, Ltd. has agreed to purchase pursuant to the Purchase
Agreement, Hudson Bay Fund, LP holds warrants to purchase 180,600 shares of
Common Stock and Hudson Bay Overseas Fund, Ltd. holds warrants to purchase
239,400 shares of Common Stock.
CUSIP No. 16941J106 13G Page 10 of 12 Pages
However, pursuant to the terms of the applicable warrants, the Hudson Bay
Funds cannot exercise any of these warrants until such time as the
Reporting Persons would not beneficially own after any such exercise more
than 4.99% of the outstanding shares of Common Stock.
The Investment Manager, which serves as the investment manager to the
Hudson Bay Funds, may be deemed to be the beneficial owner of all shares of
Common Stock beneficially owned by the Hudson Bay Funds. Each of the
Reporting Individuals, as executive officers of the Investment Manager with
the power to exercise investment discretion, may be deemed to be the
beneficial owner of all shares of Commmon Stock beneficially owned by the
Hudson Bay Funds. Each of the Investment Manager and the Reporting
Individuals hereby disclaims any beneficial ownership of any such shares of
Common Stock, except for their pecuniary interest therein.
Item 5. Ownership of Five Percent or Less of a Class
If this statement is being filed to report the fact that as of the date
hereof the reporting person has ceased to be the beneficial owner of more than
five percent of the class of securities, check the following: [ ]
Item 6. Ownership of More than Five Percent on Behalf of Another Person
Not applicable.
Item 7. Identification and Classification of the Subsidiary Which Acquired
the Security Being Reported on by the Parent Holding Company
Not applicable.
Item 8. Identification and Classification of Members of the Group
See Exhibit I.
Item 9. Notice of Dissolution of Group
Not applicable.
Item 10. Certification
By signing below each of the undersigned certifies that, to the best of
its knowledge and belief, the securities referred to above were not acquired and
are not held for the purpose of or with the effect of changing or influencing
the control of the issuer of the securities and were not acquired and are not
held in connection with or as a participant in any transaction having that
purpose or effect.
Exhibits:
Exhibit I: Joint Filing Agreement, dated as of May 21, 2008, by and among Hudson
Bay Fund, LP, Hudson Bay Overseas Fund, Ltd., Hudson Bay Capital Management, LP,
Sander Gerber, Yoav Roth and John Doscas.
CUSIP No. 16941J106 13G Page 11 of 12 Pages
SIGNATURES
After reasonable inquiry and to the best of its knowledge and belief,
each of the undersigned certifies that the information with respect to it set
forth in this statement is true, complete, and correct.
Dated: May 21, 2008
HUDSON BAY FUND, LP HUDSON BAY OVERSEAS FUND, LTD.
By: /s/ Yoav Roth By: /s/ Yoav Roth
------------- -------------
Name: Yoav Roth Name: Yoav Roth
Title Principal and Portfolio Manager Title Principal and Portfolio Manager
HUDSON BAY CAPITAL MANAGEMENT, L.P.
By: /s/ Yoav Roth /s/ Sander Gerber
---------------- -----------------
Name: Yoav Roth SANDER GERBER
Title Principal and Portfolio Manager
/s/ Yoav Roth /s/ John Doscas
------------- -----------------
YOAV ROTH JOHN DOSCAS
CUSIP No. 53954R105 13G Page 12 of 12 Pages
EXHIBIT I
JOINT FILING AGREEMENT
This will confirm the agreement by and among the undersigned that the Schedule
13G filed with the Securities and Exchange Commission on or about the date
hereof with respect to the beneficial ownership by the undersigned of the shares
of Common Stock, $0.001 par value, of China Precision Steel, Inc., is being
filed, and all amendments thereto will be filed, on behalf of each of the
persons and entities named below in accordance with Rule 13d-1(k) under the
Securities Exchange Act of 1934, as amended. This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.
Dated as of May 21, 2008
HUDSON BAY FUND, LP HUDSON BAY OVERSEAS FUND, LTD.
By: /s/ YOAV ROTH By: /s/ YOAV ROTH
---------------- -----------------
Name: Yoav Roth Name: Yoav Roth
Title Principal and Portfolio Manager Title Principal and Portfolio Manager
HUDSON BAY CAPITAL MANAGEMENT, L.P.
By: /s/ Yoav Roth By: /s/ Sander Gerber
---------------- -----------------
Name: Yoav Roth Name: SANDER GERBER
Title Principal and Portfolio Manager
/s/ Yoav Roth /s/ John Doscas
------------- ---------------
YOAV ROTH JOHN DOSCAS