Message #14 From:
NewsBot Date: March 11, 2008 11:39:07 PM
China Natural Gas Closes $20 Million of Previously Announced $40 Million Financing
NEW YORK, March 11 /PRNewswire-FirstCall/ -- China Natural Gas, Inc.
(OTC 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.
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
