HARBIN, China and NEW YORK, Sept. 21 /PRNewswire-Asia-FirstCall/ --
China North East Petroleum Holdings Limited (the "Company") (NYSE Amex: NEP), an oil producing company in Northern China, today announced that it closed its previously announced public offering of 4 million shares of its common stock at a price per share of $4.60 pursuant to a registered direct offering to several select institutional investors, representing gross proceeds of approximately $18.4 million. Investors also receive warrants to buy 800,000 shares of common stock, with an exercise price of $6.00 per share. The warrants are exercisable beginning six months after the transaction's closing.
Net proceeds from the offering are expected to be used to fund its future business expansion plan and for general working capital purposes.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (NASDAQ:RODM), acted as the exclusive placement agent for the transaction.
Mr. Hongjun Wang, Chairman and President of China North East Petroleum, commented, "We are very pleased to announce the closing of this offering. We believe this transaction will ensure the future expansion of our business presence in the private oil E&P industry in the China market place. We are encouraged by the strong interest and solid participation by reputable shareholders in our offering and we will work diligently to maximize shareholder value and reward their confidence in China North East Petroleum."
This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The shares of common stock may only be offered by means of a prospectus. Copies of the final prospectus supplement and accompanying base prospectus can be obtained from the SEC's website at http://www.sec.gov/ .
ABOUT CHINA NORTH EAST PETROLEUM (NYSE Amex: NEP)
China North East Petroleum Holdings Limited is an independent oil company that engages in the production of crude oil in Northern China. The Company is a pioneer in China's private oil exploration and production industry, and the first Chinese non-state-owned oil company trading on the NYSE Amex.
The Company has a guaranteed arrangement with the PetroChina to sell its produced crude oil for use in the China marketplace. The Company currently operates four oilfields in Northern China. For more information about the Company, please visit http://www.cnepetroleum.com/ .
Statements in this press release which are not historical data are forward-looking statements which involve known and unknown risks, uncertainties or other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance or other expectations implied by these forward-looking statements. These factors include, but are not limited to, those detailed in the company's periodic filings with the Securities and Exchange Commission.
For more information, please contact:
United States:
Chao Jiang
Executive Vice President of Finance
Tel: +1-212-307-3568
Email:
China:
Yang Dio Zhang
Chief Financial Officer
Tel: +86-451-5558-0253
Email:
DATASOURCE: China North East Petroleum Holdings Limited
CONTACT: United States: Chao Jiang, Executive Vice President of Finance,
+1-212-307-3568, or ; China: Yang Dio Zhang, Chief
Financial Officer, +86-451-5558-0253, or
Web Site: http://www.cnepetroleum.com/