China Natural Gas Closes $20 Million of Previously Announced $40 Million Financing
11 März 2008 - 2:00PM
PR Newswire (US)
NEW YORK, March 11 /PRNewswire-FirstCall/ -- China Natural Gas,
Inc. (OTC:CHNG) (BULLETIN BOARD: CHNG) , one of the leading
providers of pipeline natural gas for industrial, commercial and
residential use and compressed natural gas (CNG) for vehicular fuel
in Xi'an, China, today announced the closing of the second half, or
$20 million, of its previously announced $40 million debt financing
with Abax Lotus Ltd., an affiliated entity of Abax Global Capital
("AGC") announced previously in January, 2008. The net proceeds
from the offering will be used for the construction of the
Company's previously announced LNG processing facility in the
Shaanxi Province and for the construction and acquisition of
additional CNG filling stations throughout Xi'an and other regions
of China. The Company and Abax Lotus Ltd. entered into a Purchase
Agreement dated as of December 30, 2007, and as amended on January
29, 2008, pursuant to which the Company agreed to (i) the issuance
and sale of up to RMB145 million (approximately US$20 million) in
principal amount of its 5.0% Guaranteed Senior Notes due 2014, (ii)
the grant by the Company to the Abax Lotus Ltd. of the option to
purchase up to RMB145 million (the equivalent of US$20 million) in
principal amount of its 5.0% Guaranteed Senior Notes due 2014 (the
"First Option Notes"), (iii) the grant by the Company to Abax Lotus
Ltd. of the option to purchase up to RMB73 million (approximately
US$10 million) in principal amount of its 5.0% Guaranteed Senior
Notes due 2014, and (iv) the issuance of warrants representing the
right to purchase 2,900,000 shares of the Company's common stock.
Abax Lotus Ltd. elected to exercise its option to purchase the
First Option Notes with the First closing completed on March 10,
2008. As of today, the Company has issued RMB290 million in
principal amount of its 5.0% Guaranteed Senior Notes due 2014 and
warrants representing the right to purchase 2,900,000 shares of the
Company's common stock to Abax Lotus Ltd. for US$40 million. More
information can be obtained from the Company's recently filed Form
8-K, recently filed on January 29, 2008. About China Natural Gas,
Inc. China Natural Gas, Inc., ("CHNG"), is the first China-based
natural gas company publicly traded in the US. It currently owns
and operates a 120 kilometer long compressed natural gas pipeline
in Xi'an, China, a fast growing Chinese city supported by a
population of approximately eight million and is the "gateway" to
the broad Western regions of China. CHNG has three profitable
business segments: end user delivery of natural gas services to
residential, commercial and industrial customers; wholesale natural
gas to retail natural gas filling stations; and retail natural gas
at company-owned natural gas filling stations. The city of Xi'an
has approximately 20,000 Taxis, 3,000 buses and 2,000 special
purpose vehicles that are powered by compressed natural gas. This
press release may contain forward-looking statements. These
statements are based on the current expectations or beliefs of
China Natural Gas, Inc. management and are subject to a number of
factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements,
including the fluctuation of natural gas prices, the availability
of natural gas supplies, changes in governmental regulations and/or
economic policies. About Abax Global Capital Abax Global Capital
("AGC") is a leading Hong Kong based investment firm focused on
Pan-Asian public and private investments with a particular emphasis
on Greater China and South East Asia. AGC's objective is to invest
in and create value for small to mid-sized Asian enterprises,
thereby generating returns for all stakeholders. Morgan Stanley
Investment Management is a minority shareholder of AGC, an
independently managed investment company. Certain of the statements
made herein constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Such statements typically involve risks and uncertainties and may
include financial projections or information regarding our future
plans, objectives or performance. Actual results could differ
materially from the expectations reflected in such forward-looking
statements as a result of a variety of factors, including the risks
associated with the effect of changing economic conditions in The
People's Republic of China, variations in cash flow, reliance on
collaborative retail partners and on new product development,
variations in new product development, risks associated with rapid
technological change, and the potential of introduced or undetected
flaws and defects in products, and other risk factors detailed in
reports filed with the Securities and Exchange Commission from time
to time. CONTACT Integrated Corporate Relations, Inc. In the U.S.:
Ashley Ammon MacFarlane 203-682-8200 In China: Dan Joseph
86-21-6122-1077 DATASOURCE: China Natural Gas, Inc. CONTACT: In the
U.S., Ashley Ammon MacFarlane, +1-203-682-8200, or In China, Dan
Joseph, +86-21-6122-1077, both of Integrated Corporate Relations,
Inc. for China Natural Gas, Inc. Web site:
http://www.naturalgaschina.com/
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