BEIJING
,
Jan. 7
/PRNewswire-Asia-FirstCall/ -- Sino Gas International Holdings, Inc. (OTC 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: [email protected]
Investor Relations Contact:
Richard Cooper/ Linda Ni
Strategic Growth International
Tel: +1-212-838-1444
Email: [email protected],
[email protected]
Web: http://www.sgi-ir.com
SOURCE Sino Gas International Holdings, Inc.
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