Message #2 From:
Stock News Bot Date: August 8, 2009 11:54:05 AM
CAEI, China Architectural Engineering Announces Agreement to Sell Common Stock
Majority of Proceeds to Develop Nine Dragon Resort -
ZHUHAI, China and LOS ANGELES, Aug. 7 /PRNewswire-Asia/ -- China
Architectural Engineering, Inc. ('CAE' or the 'Company') (Nasdaq: CAEI China Stock News), a
leader in the design, engineering, fabrication and installation of high-end
building envelope systems, today announced that it has agreed to sell 17
million shares of its common stock at a price of $1.65 per share to certain
qualified investors pursuant to a Securities Purchase Agreement dated August 6,
2009. The closing, which is subject to approval by CAE's shareholders, is
anticipated to occur on or before September 30, 2009. Concurrently with the
execution of the Securities Purchase Agreement, in a separate transaction, the
principal stockholder of the Company, KGE Group, Limited sold 5 million shares
of CAE's common stock held at a price of $0.90 per share to a new investor,
Resort Property International Limited, which is a holding company to the
principal stockholder of Shanghai Nine Dragon Co. Ltd.
In conjunction with the Securities Purchase Agreement, the Company has
entered into an amendment and waiver agreement with the holders of the
Company's outstanding convertible bonds, ABN AMRO Bank N.V., London Branch
('ABN AMRO') and CITIC Capital China Mezzanine Fund Limited ('CITIC'). Both
ABN AMRO and CITIC have agreed to waive their rights to a reduction in the
conversion price of the bonds and the exercise price of the warrants due to
the Company's sale of the shares.
Mr. Ken Yi Luo, Chairman and Chief Executive Officer of China
Architectural Engineering, commented, 'We are very pleased to have secured the
raising of additional capital. We expect the majority of the proceeds from
this transaction will be used to accelerate the development and construction
of the previously announced Nine Dragon Resort project. We believe that our
cooperation with Nine Dragon creates a unique opportunity for our Company,
enabling us to add a new dimension to our business model. We are confident
that through these strategic initiatives, we will continue to further
strengthen our leadership position in China, grow our business, and ultimately
bring greater value to our shareholders.'
Additional information on the securities purchase agreement and amendment
and waiver agreement can be found in the Company's filing with the SEC.
About CAEI Stock Profile China Architectural Engineering
China Architectural Engineering, Inc. (NASDAQ:CAEI) is a leader in the
design, engineering, fabrication and installation of high-end curtain wall
systems, roofing systems, steel construction systems, and eco-energy systems.
Founded in 1992, CAEI has maintained its market leadership by providing timely,
high-quality, reliable, fully integrated, and cost-effective solutions.
Collaborating with world-renowned architects and building engineers, the
Company has successfully completed nearly one hundred large, complex and
unique projects worldwide, including numerous award-winning landmarks across
Asia's major cities.
For further information on China Architectural Engineering, Inc., please
visit http://www.caebuilding.com
Forward-Looking Statements
In addition to historical information, the statements set forth above may
include forward-looking statements that may involve risk and uncertainties
that could cause actual results to differ materially from those in the
forward-looking statements. Actual results could differ materially from the
expectations contained in forward-looking statements as a result of risks and
uncertainties, including, but not limited to, conditions being met for the
closing of the Securities Purchase Agreement such as shareholder approval,
adverse capital and credit market conditions, the vulnerability of the
Company's business to a general economic downturn in China and globally; the
Company's dependence on government contracts, changes in the laws of the PRC
that affect the Company's operations, fluctuation and unpredictability of
costs related to the Company's products and services, the Company's dependence
on the steel and aluminum markets, reduction or reversal of the Company's
recorded revenue or profits due to 'percentage of completion' method of
accounting and expenses, and costs associated with its convertible bonds,
regulatory approval requirements and competitive conditions. These and other
factors that may result in differences are discussed in greater detail in
the Company's reports and other filings with the Securities and Exchange
Commission.
Investor Contact:
ICR: Michael Tieu Tel: +86-10-6599-7960 Email: michael.tieu@icrinc.com
Bill Zima Tel: +1-203-682-8200 Email: bill.zima@icrinc.com
