--Receives Proceeds of $14.1 million--
XI'AN, China, Oct. 16 /Xinhua-PRNewswire-FirstCall/ -- China Bio Energy Holdings (OTC Bulletin Board: CBEH) ("China Bio Energy" and the "Company"), an energy company engaged in the distribution of heavy oil and finished oil products and the production and distribution of bio-diesel fuel, announced that it has completed a $9,000,000 financing by issuing a non-interest bearing debenture that is convertible into 2,465,753 shares of Series B Convertible Preferred Stock at $3.65 per share. The Company also received an additional $5,113,635 from the exercise of roughly 1.7 million issued and outstanding warrants at a strike price of $3.00.
"We are pleased to receive the continued support of our shareholders," stated Gao Xincheng, Chief Executive Officer of China Bio Energy, "With this $14 million cash injection, we believe we are in a strong position financially to expand our bio-diesel production and also to take advantage of possible acquisition opportunities that may arise related to bio-diesel assets in China. Now that our bio-diesel facility is producing at near full capacity we believe we have demonstrated the strength of our technical capabilities. We also think that the rapid rate at which we were able to grow our bio-diesel business demonstrates the significant advantage our distribution network represents. This injection of capital demonstrates yet another competitive advantage of ours relative to companies in China-the ability to access capital markets to support continued growth. We believe that these competitive advantages, combined with the tremendous growth potential of the bio-diesel market in China, provide us with a firm foundation for accelerated growth in the years ahead."
The debenture agreement includes a number of other important
provisions. First the agreement includes a "make-good" provision which
stipulates that the Company achieve net income and fully diluted earni
|SOURCE China Bio Energy Holdings|
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