Sinoenergy Corp. Announces Signing of $30 Million Private Placement Financing
QINGDAO, China, Sept. 5 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy
Corporation (OTC Bulletin Board: SNEN), ("Sinoenergy" or the "Company"), a
manufacturer of compressed natural gas (CNG) vehicle and gas station
equipment as well as a designer, developer and builder of CNG stations in
China today announced it entered into a purchase agreement on September 1,
2007 for the private placement of $30 million senior secured notes and
secured convertible notes.
Pursuant to the terms of the purchase agreement, the Company has agreed
to sell, and Abax Global Capital and China Century Investment Fund Limited
have agreed to purchase, (a) $16,000,000 of the Company's 12% Senior
Secured Notes due 2012 and (b) $14,000,000 of the Company's 3% Senior
Secured Convertible Notes due 2012. The Convertible Notes are convertible
into the Company's common stock at an initial conversion price of US $3.17
per share, which represents a 25% premium of the 30 trading days volume
weighted average price ending August 31, 2007.
Sinoenergy intends to use the net proceeds from this transaction for
its expansion plan in CNG wholesale and retail business as well as for
working capital and potential acquisitions, although the Company has no
agreements or understandings with respect to any acquisitions.
"This financing provides Sinoenergy with a timely source of capital to
continue executing our planned growth in CNG wholesale and retail market.
The cash proceeds, coupled with the cash on hand, provide us with
sufficient capital to meet our capital expenditure program in line with our
strategic growth initiatives," said Mr. Bo Huang, CEO of Sinoenergy
Corporation. "With these resources, Sinoenergy is focused on building our
previously announced network of CNG processing and filling stations in
Central and Eastern China. The first two filling stations in Wuhan are
expected to open by during September and the Company plans to build a total
of 100 CNG filling stations in Central and Eastern China by the end of
2009, although the exact timing is subject to obtaining timely government
approval."
"Sinoenergy is building a leadership position in the CNG vehicle
industry in China, which has strong growth prospects as the PRC supports
initiatives to improve air quality and reduce petroleum imports through use
of clean burning compresses natural gas," said Donald Yang, President of
Abax Global Capital. "We are pleased to be making this strategic investment
that will support the Company's growth plans."
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