Sino Gas International Holdings Completes Growth Funding Plan
07 1월 2010 - 8:00PM
PR Newswire (US)
Capital Raised in Overseas Market and Bank Loan Commitments in
China will Stimulate Future Growth BEIJING, Jan. 7
/PRNewswire-Asia-FirstCall/ -- Sino Gas International Holdings,
Inc. (OTC:SGAS) (BULLETIN BOARD: SGAS) , today announced that it
has taken several actions to ensure that the Company has sufficient
capital for both the speed-up of the build-out of its existing
connection systems and for other growth opportunities in the
natural gas industry. The Company completed a $6.04 million (U.S.)
private equity placement with several accredited investors on
November 30th, 2009 and on December 23rd, 2009. The placement was
arranged by Axiom Capital Management, based in New York City. Terms
of the placement are more fully disclosed in Form 8-K filings that
the Company made on December 4, 2009 and December 30, 2009. This
$6.04 million, together with bank loans recently secured, will
provide the Company with approximately $14.5 million of available
capital over the near term. Included in this new $14.5 million
capital infusion are approximately $4.37 million of loan approvals
from the Bank of Communications, one of the five largest commercial
banks in China, and another approximately $4.37 million of loan
approvals from the China Development Bank, a major infrastructure
lender to the energy sector in China. As Mr. Yu-Chuan Liu, Chairman
and Chief Executive Officer of Sino Gas, stated, "We are
proactively taking advantage of the capital markets in China and
the U.S., in order to better enable us to take advantage of the
growth opportunities that exist in China in the natural gas arena.
We are glad that two world-class banks like the Bank of
Communication and the China Development Bank have recognized our
great potential through their loan commitments." Mr. Yugang Zhang,
Chief Financial Officer of Sino Gas, added, "We will continue to
bring natural gas access to more and more residents and industrial
users in our markets and increase the penetration rate in the
existing markets. The continued emphasis of the Central Government
regarding the use of clean energy by the construction sector
together with the positive growth trends in new construction in
China should continue to stimulate growth in our industry. The
addition of these capital sources should allow Sino Gas to be
better able to take advantage of these opportunities." About Sino
Gas International Holdings, Inc. The Company, through its
indirectly wholly-owned subsidiary, Beijing Zhong Ran Wei Ye Gas
Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas, is
a leading developer of natural gas distribution systems in small
and medium size cities in China, as well as a distributor of
natural gas to residential, commercial and industrial customers in
China. The company owns and operates 37 natural gas distribution
systems serving approximately 100,900 residential and five
commercial and industrial customers. Facilities include
approximately 710 kilometers of pipeline and delivery networks with
a daily capacity of approximately 89,000 cubic meters of natural
gas. The Company owns and operates natural gas distribution systems
in Beijing, Hebei, Jilin, Jiangsu, Anhui and Yunnan Provinces. The
Company's website is: http://www.sino-gas.com/ . Forward-Looking
Safe Harbor Statement Statements in this news release regarding
future financial and operating results, potential applications of
the Company's technology, opportunities for the Company, and any
other statements about the future expectations, beliefs, goals,
plans, or prospects expressed constitute forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995. Any statements that are not statements of historical fact
(including statements containing the words "will," "believes,"
"plans," "anticipates," "expects," "estimates," and similar
expressions) should also be considered to be forward-looking
statements. There are a number of important factors that could
cause actual results or events to differ materially from those
indicated by such forward-looking statements including: limited
operating history, need for future capital, and economic conditions
generally. Additional information on potential factors that could
affect results and other risks and uncertainties are detailed from
time to time in the Company's periodic reports, including Forms
10-K, 10-Q, 8-K, and other forms filed with the Securities and
Exchange Commission ("SEC"). These statements, and other
forward-looking statements, are not guarantees of future
performance and involve risks and uncertainties. For more
information, please contact: Sino Gas International Holdings, Inc.
Chunying Chai, IR Officer Tel: +86-10-8260-0041 x883 Email:
Investor Relations Contact: Richard Cooper/ Linda Ni Strategic
Growth International Tel: +1-212-838-1444 Email: , Web:
http://www.sgi-ir.com/ DATASOURCE: Sino Gas International Holdings,
Inc. CONTACT: Chunying Chai, IR Officer of Sino Gas International
Holdings, Inc., +86-10-8260-0041 x883, ; or Investors, Richard
Cooper, , or Linda Ni, , both of Strategic Growth International,
+1-212-838-1444 Web site: http://www.sino-gas.com/
http://www.sgi-ir.com/
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