5th Jun 2007 10:41
Green Dragon Gas Ltd05 June 2007 Immediate Release 5 June 2007 GREEN DRAGON GAS LTD. ("Green Dragon" or "the Company") Issue of US$50m Convertible Bond and Management Change The Company announces that it has raised US$50 million through the issuance of aconvertible note with a zero coupon and a maturity date of 31 May 2009 ("theConvertible Bond") to an institutional investor. The Convertible Bond isconvertible into the Company's ordinary shares at a conversion price of US$5.56per share, the placing price of the Company's ordinary shares on its admissionto AIM in August 2006, which represents a 9% discount to the closing bid priceon 31 May 2007 ("Issue Date"). Under the terms of the Convertible Bond, theinvesting institution has the right to put the Convertible Bond to the Company,under certain conditions, on the 18 month anniversary of the Issue Date at aredemption price of 113.5% of the principal amount (equivalent to a 9%annualized yield). The Company also has the right on the 18 month anniversarydate of the Issue Date to call the Convertible Bond at a redemption price of100% of the principal amount. In the event that neither party exercises the putor the call option or any portion of the Convertible Bond has not been convertedin part or in whole, 118% of the principal amount outstanding under theConvertible Bond is due and payable on 31 May 2009. UBS and Quam Securities Capital acted as facilitators and Fried Frank and Maples& Calder were legal counsel to the Company in the transaction that completed on1 June 2007. The Company is also pleased to announce the appointment of Mr. Alfred Yan WingCheung as Chief Financial Officer with effect from 1 June 2007. Mr. Yan, aged42, is a fellow member of the Hong Kong Institute of Certified PublicAccountants and of the Association of Chartered Certified Accountants, UK and anassociate member of the Chartered Institute of Management Accountants, UK. Priorto joining the Company, Mr. Yan was the chief financial officer of a Hong Konglisted company, Chinese People Gas Holdings Company Limited for the period fromJuly 2005 to April 2007. Mr. Yan has over 18 years' experience in accounting,auditing and corporate finance and held various senior positions in True SeatingConcepts Limited, Deloitte Touche Tohmatsu, KPMG and BDO. Mr. Sean Chen Shong Woo has resigned from the Board with immediate effect andthe Company will seek to appoint a replacement director to the Board in duecourse. Mr. Randeep S. Grewal, Chairman and CEO, comments, "While we had sufficient cashon hand, the Company elected to strengthen its balance sheet to accelerate itsgrowth plans for this year. The Convertible Bond provides the Company with avery timely source of capital to continue executing our planned growth. The cashproceeds, coupled with the cash on hand, provide us with sufficient capital tomeet our capital expenditure program through this year and beyond. We arepleased to see the institutional confidence and support in facilitating theCompany's progress. "We wish Sean Chen, our departing CFO, the best as he returns to Malaysia totake over his family business. While he will be missed, we are delighted to haveAlfred Yan join the team and build upon Sean's foundation work accomplishedduring the last year." For further information on the Company and its activities, please refer to thewebsite at www.greendragongas.com or contact: Randeep GrewalChairman and Chief Executive, Green Dragon Gas Ltd.+852 3710 0168 Tim Thompson/ Nick Melson/ Susannah GaleBuchanan Communications+ 44 (0)20 7466 5000 Dr Azhic Basirov/ David JonesSmith & Williamson Corporate Finance Limited+44 (0)20 7131 4000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
G3 Exploration