SHENZHEN, China, April 27, 2011 /PRNewswire-Asia-FirstCall/ -- New
Energy Systems Group (NYSE Amex: NEWN) ("New Energy" or the
"Company"), a vertically-integrated original design manufacturer
and distributor of lithium ion batteries and consumer branded
backup power systems, has established two separate credit lines
with China-based asset management
firms. The short term loans total 60 million
RMB or $9.2 million USD and
are earmarked for capital investment and working capital needs of
the Company.
New Energy Chairman Weihe Yu
explained, "These agreements provide us with additional financial
flexibility to fund our future growth. After evaluating several
options, we decided that securing this funding at a reasonable cost
was in our shareholders' best interest. While we do not anticipate
drawing on these lines immediately, having access to this funding
in advance of actually needing it is a competitive advantage in the
current environment."
On April 21, 2011 New Energy
Systems Group entered into two separate loan agreements with
Chuangding Investment Consulting (Shenzhen) Co., Ltd. ("CIC") and Beijing
Guojincheng Asset Management Co., Ltd. ("GAM"). Under the
agreements, CIC and GAM have each committed to lend up to
RMB 30 million with an interest rate
of 10% per annum. Each loan is guaranteed by Chairman Yu, is
secured by 539,091 shares of the Company's common stock
beneficially owned by Chairman Yu, and was not subjected to any
processing or management fee. Balances on the loans can be paid
down in installments or in its entirety, but mature 730 days from
inception. For more details, please refer to the 8-K the Company
filed with the SEC on April 26,
2011.
"We understand that New Energy, similar to many China-Based,
US-Listed companies are in a situation where accessing the capital
markets is not economically viable at this juncture," began Pinggui
Zhang of GAM. "The reality is that many small to medium sized
companies in China continue to
grow rapidly and are in need of capital to achieve their goals.
After extensive due diligence on the company and its growth plans,
our team agreed that funding companies like New Energy Systems
Group provides an excellent risk-adjusted return to our clients,"
Qin Liu concluded.
About Chuangding Investment Consulting (Shenzhen) Co., Ltd.
Chuangding Investment Consulting (Shenzhen) Co., Ltd. was founded in 2007 and
the current assets under management are approximately 300 million RMB. Chuangding focuses on
investments in traditional industries, including energy, technology
and medical equipment.
Contact
information:
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Qin Liu
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No. 403, Sha Zui
Building,
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Futian District,
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Shenzhen City, China
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Tel: +86
-755-8342-3701
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About Beijing Guojincheng Asset
Management Co., Ltd.
Beijing Guojincheng Asset Management Co., Ltd. was established
in 2010 and the current assets under its management are around
500 million RMB. Guojincheng's
investment is majorly focused on the industries related to new
energy, clean energy, and environmental protection and
energy-saving products.
Contact
information:
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Pinggui Zhang
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No.1006, Door 2, Building 13,
Gongti E Rd.,
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Chaoyang District,
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Beijing City, China
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Tel: +86-10-6551-5967
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About New Energy Systems Group
New Energy Systems Group is a vertically integrated original
design manufacturer and distributor of lithium ion batteries and
backup power systems for leading manufacturers of mobile phones,
laptops, digital cameras, MP3s and a variety of other portable
electronics. The Company's end-user consumer products are sold
under the Anytone® brand in China
while it's commercial and OEM batteries and battery components are
sold under New Power and E'Jenie. The fast pace of new mobile
device introductions in China
combined with a growing middle class make it fertile ground for New
Energy's end-user consumer products, as well as its high powered,
light weight lithium ion batteries. In addition to historically
strong organic growth, New Energy is expected to benefit from
economies of scale, broader distribution and higher profit margins
in 2011. Additional information about the company is available at:
www.newenergysystemsgroup.com.
Forward Looking Statements
This release contains certain "forward-looking statements"
relating to the business of the Company and its subsidiary and
affiliated companies. These forward looking statements are often
identified by the use of forward-looking terminology such as
"believes," "expects" or similar expressions. Such forward looking
statements involve known and unknown risks and uncertainties that
may cause actual results to be materially different from those
described herein as anticipated, believed, estimated or expected.
Investors should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of factors, including those discussed in the Company's
periodic reports that are filed with the Securities and Exchange
Commission and available on its website (www.sec.gov). All
forward-looking statements attributable to the Company or to
persons acting on its behalf are expressly qualified in their
entirety by these factors other than as required under the
securities laws. The Company does not assume a duty to update these
forward-looking statements.
For more information, please
contact:
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COMPANY
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New Energy Systems
Group
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Ken Lin, VP of Investor
Relations
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Tel: +1-917-573-0302
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Email:
ken@newenergysystemsgroup.com
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Web:
www.newenergysystemsgroup.com
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INVESTOR
RELATIONS
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HC International,
Inc.
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John Mattio, SVP
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Tel: +1-212-301-7130
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Email:
john.mattio@hcinternational.net
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Web:
www.hcinternational.net
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SOURCE New Energy Systems Group