China Natural Gas, Inc. Closes $50 million Public Offering of Common Stock
14 September 2009 - 2:00PM
PR Newswire (US)
NEW YORK, Sept. 14 /PRNewswire-Asia/ -- China Natural Gas, Inc.
("China Natural Gas" or the "Company") (NASDAQ:CHNG), a leading
provider of compressed natural gas (CNG) for vehicular fuel and
pipeline natural gas for industrial, commercial and residential use
in Xi'an, China, today announced that it has completed its
underwritten public offering for 5,725,000 shares of its common
stock at a price of $8.75 per share on September 9, 2009. The
offering of shares was made pursuant to a registration statement
previously filed with the Securities and Exchange Commission. The
net proceeds, after deducting underwriting discounts and
commissions and the Company's roadshow travel expenses but before
other expenses, is approximately $47.5 million. China Natural Gas
has granted the underwriters a 30-day option to purchase up to an
additional 858,750 shares to cover over-allotments at the public
offering price. Roth Capital Partners, LLC acted as the sole book
runner for the offering, and Simmons & Company International
acted as a co-manager for the offering. The net proceeds from the
offering will be used for the construction of the Company's
liquefied natural gas (LNG) facility, the acquisition of eight CNG
fueling stations, the purchase of eight CNG trucks to transport CNG
and the establishment of a joint venture company with China
National Petroleum Corporation Kunlun Natural Gas Co., Ltd., as
well as for general working capital purposes. Mr. Qinan Ji,
Chairman and CEO of China Natural Gas, commented, "We are very
pleased to announce the closing of this public offering. We believe
this transaction will ensure the future growth of our LNG business
and expansion of our existing CNG business, as well as further
strengthen our balance sheet and enhance our working capital. We
are encouraged by the strong interest and solid participation by
reputable shareholders in our offering and we will work diligently
to optimize shareholder value and reward their confidence in China
Natural Gas. We will continue to grow our business strategically by
steadily expanding our CNG customer base and growing our LNG
business so as to capture the opportunities that arise in this
rapidly growing natural gas markets." About China Natural Gas, Inc.
China Natural Gas transports and sells natural gas to vehicular
fueling terminals, as well as commercial, industrial and
residential customers through its distribution networks in China's
Shaanxi and Henan Provinces. The Company owns approximately 120 km
of high-pressure pipelines and operates 23 CNG fuelling stations in
Shaanxi Province and 12 CNG fuelling stations in Henan Province.
China Natural Gas' four primary business lines include: (1) the
distribution and sale of CNG through Company-owned CNG fuelling
stations for hybrid (natural gas/gasoline) powered vehicles; (2)
the installation, distribution and sale of piped natural gas to
residential, commercial and industrial customers through
Company-owned pipelines; (3) the distribution and sale of gasoline
through Company-owned CNG fuelling stations for hybrid (natural
gas/gasoline) powered vehicles; and (4) the conversion of
gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered
vehicles through its auto conversion division. SAFE HARBOR:
FORWARD-LOOKING STATEMENTS This press release includes statements
that may constitute forward-looking statements made pursuant to the
safe harbor provision of the Private Securities Litigation Reform
Act of 1995. These forward-looking statements can be identified by
terminology such as "will," "expects," "anticipates," "future,"
"intends," "plans," "believes," "estimates" and similar statements.
For example, statements about the future plans and goals of the
joint venture with China National Petroleum Corporation Kunlun
Natural Gas Co., Ltd. and its prospects are forward looking and
subject to risks. China Natural Gas, Inc. may also make written or
oral forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on forms 10-K, 10-Q and 8-K, in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about the Company's beliefs
and expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties that could
cause actual results to differ materially from the forward-looking
statements. A number of important factors could cause actual
results to differ materially from those contained in any
forward-looking statement. Potential risks and uncertainties
include, but are not limited to, risks outlined in the Company's
filings with the U.S. Securities and Exchange Commission, including
its registration statements on Forms S-1 and S-3, in each case as
amended. The Company does not undertake any obligation to update
any forward-looking statement, except as required under applicable
law. This release is not an offer of securities for sale in the
United States. Securities may not be offered or sold in the United
States absent registration or an exemption from registration. Any
public offering of securities to be made in the United States will
be made by means of a prospectus that may be obtained from the
issuer or selling security holder and that will contain detailed
information about the company and management, as well as financial
statements. For more information, please contact: China Natural
Gas, Inc. U.S.: Kewa Luo Tel: +1-212-401-1233 Cell: +1-917-880-8726
CHINA Jacky Shi Tel: +86-29-88454353 Cell: +86-139-9287-9998 Email:
ICR, Inc. Michael Tieu Tel: +86-10-6599-7960 Email: DATASOURCE:
China Natural Gas, Inc. CONTACT: China Natural Gas, Inc.: U.S.,
Kewa Luo, +1-212-401-1233 (Tel), or +1-917-880-8726 (Cell); or
CHINA, Jacky Shi, +86-29-88454353 (Tel), or +86-139-9287-9998
(Cell), or ; or ICR, Inc., Michael Tieu, +86-10-6599-7960, or
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