China North East Petroleum Holdings Ltd. to Raise $13.5 Million in Registered Direct Offering
December 14 2009 - 12:28PM
PR Newswire (US)
HARBIN, China and NEW YORK, Dec. 14 /PRNewswire-Asia-FirstCall/ --
China North East Petroleum Holdings Limited (the "Company") (NYSE
AMEX: NEP), a leading independent oil producing and oilfield
services company in Northern China, has entered into definitive
agreements to sell 1,963,637 million shares of its common stock at
a price per share of $6.875 pursuant to a registered direct
offering to several select institutional investors, representing
gross proceeds of approximately $13.5 million. Investors will also
receive warrants to purchase 392,728 shares of China North East
Petroleum Holdings Ltd.'s common stock. The warrants have an
exercise price of $8.10 per share and are exercisable beginning six
months after the closing of the transaction and before the two and
a half year anniversary of such initial issuance date. The closing
of the offering is expected to take place on or about Thursday,
December 17, 2009, subject to the satisfaction of customary closing
conditions. China North East Petroleum Holdings Ltd. plans to use
the net proceeds from the offering to redeem its 8% Senior
Debenture issued to Lotusbox Investments Ltd on February 28, 2008
and for general working capital purposes. The shares and warrants
are being offered by China North East Petroleum Holdings Ltd.
pursuant to an effective shelf registration statement filed with
the Securities and Exchange Commission dated September 9th, 2009.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman
& Renshaw Capital Group, Inc. (NASDAQ:RODM), acted as the
exclusive placement agent for the transaction. This press release
shall not constitute an offer to sell or the solicitation of an
offer to buy nor shall there be any sale of the securities in any
state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction. The shares of
common stock may only be offered by means of a prospectus. Copies
of the final prospectus supplement and accompanying base prospectus
can be obtained from the SEC's website at http://www.sec.gov/ .
ABOUT CHINA NORTH EAST PETROLEUM China North East Petroleum
Holdings Limited is an independent oil company that engages in the
production of crude oil in Northern China. The Company is a pioneer
in China's private oil exploration and production industry, and the
first Chinese non-state-owned oil company trading on the NYSE Amex.
The Company has a guaranteed arrangement with the PetroChina to
sell its produced crude oil for use in the China marketplace. The
Company currently operates four oilfields in Northern China. The
Company also recently added an oil service subsidiary through its
acquisition of Song Yuan Tiancheng Drilling Engineering Co. Ltd.
("Tiancheng"). For more information about the Company, please visit
http://www.cnepetroleum.com/ . Statements in this press release
which are not historical data are forward-looking statements which
involve known and unknown risks, uncertainties or other factors not
under the company's control, which may cause actual results,
performance or achievements of the company to be materially
different from the results, performance or other expectations
implied by these forward-looking statements. These factors include,
but are not limited to, those detailed in the company's periodic
filings with the Securities and Exchange Commission. For more
information, please contact: United States: Chao Jiang Senior Vice
President, Corporate Finance Tel: +1-212-307-3568 Email: ICR, Inc.
Bill Zima Tel: +1-203-682-8200 China: Yang Dio Zhang Chief
Financial Officer Tel: +86-451-5558-0253 Email: DATASOURCE: China
North East Petroleum Holdings Limited CONTACT: United States, Chao
Jiang, Senior Vice President, Corporate Finance, +1-212-307-3568, ;
Bill Zima, ICR, Inc., +1-203-682-8200; China, Yang Dio Zhang, Chief
Financial Officer, +86-451-5558-0253, Web site:
http://www.cnepetroleum.com/
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