China XD Plastics Company Limited Announces $15.2 Million Private Placement
Company Ltd. (“China XD Plastics” or the “Company”), (OTC Bulletin Board: CXDC,
Nasdaq: CXDC), the largest Chinese developer, manufacturer, and distributor of
modified plastics primarily for use in the automotive applications in
today announced that it has entered into a private placement agreement with
several institutional and individual investors to sell an aggregate 15,188
shares of convertible preferred stock, resulting in aggregate gross proceeds
of approximately
Company’s common stock at a price of
cumulative dividends at the rate of 6% per annum until maturity on
2012
Company will pay the holder an amount equal to the total dividend that would
accrue on the convertible preferred stock from the conversion date through
maturity, less any dividend payments made with respect to the converted
preferred stock. Any shares of preferred stock outstanding at maturity will be
redeemed by the Company. Additionally, the investors in the financing were
issued two series of common stock purchase warrants, a Series A Warrant and a
Series B Warrant. The Series A Warrants are exercisable into an additional
1,320,696 shares of common stock with an exercise price of
The Series A Warrant will be exercisable six months after the closing of the
transaction, and have a term of five years. The Company has also issued to the
investors in the financing a Series B Warrant that automatically exchanges
into shares of common stock if the market value of the Company’s common stock
(as calculated and determined under the Series B Warrant) on the date that the
shares of common stock underlying the convertible preferred stock are subject
to a resale registration statement or eligible for resale pursuant to an
exemption under the securities laws, whichever is earliest as to such shares,
is less than
is based on the difference between
stock on the day of determination provided that the maximum number of shares
of common stock issuable pursuant to the Series B Warrant, in the aggregate,
is 1,178,722. The Company is obligated to register the shares of common stock
underlying the convertible preferred stock and warrants within a pre-defined
period pursuant to a registration rights agreement. The private placement is
expected to close on or around
conditions.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw
Capital Group, Inc. (Nasdaq: RODM), acted as the exclusive placement agent for
the transaction.
“We are excited to announce our financing, which demonstrates the
confidence investors have in the Company and our prospects for the future,”
said Mr.
proceeds mainly to fund our production capacity expansion program.”
This press release does not constitute an offer to sell or the
solicitation of an offer to buy any securities. There shall not be any sale of
these securities in any jurisdiction in which such offering would be unlawful.
The securities offered and sold in the private placement have not been
registered under the Securities Act of 1933, as amended, or any state
securities laws, and may not be offered or sold in
registration, or an applicable exemption from registration under the
Securities Act and applicable state securities laws.
About China XD Plastics Company Ltd.
China XD Plastics Company Ltd., through its wholly owned subsidiary Harbin
Xinda Macromolecule Material (“Xinda”), develops, manufactures, and
distributes modified plastics, primarily for automotive applications. The
Company’s specialized plastics are used in the exterior and interior trim and
in the functional components of more than 30 automobile brands manufactured in
wholly-owned research institute is dedicated to the research and development
of modified plastics, and benefits from the cooperation with well-known
scientists from prestigious universities in
30, 2009
one or more of the automobile manufacturers in
please visit http://www.chinaxd.net .
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning
of the safe harbor provisions of the Private Securities Litigation Reform Act
of 1995. All statements other than statements of historical fact in this
announcement are forward-looking statements, including but not limited to, the
Company’s ability to increase the number of certifications; the Company’s
ability to introduce new product applications for automobiles; the
effectiveness, profitability, and the marketability of its products; the
Company’s ability to successfully expand its production capacity; the
company’s ability to protect its proprietary information; general economic and
business conditions; the volatility of the company’s operating results and
financial condition; the company’s ability to attract or retain qualified
senior management personnel and research and development staff; and other
risks detailed in the company’s filings with the Securities and Exchange
Commission and available on its website at http://www.sec.gov . These
forward-looking statements involve known and unknown risks and uncertainties
and are based on current expectations, assumptions, estimates and projections
about the companies and the industry. The company undertakes no obligation to
update forward-looking statements to reflect subsequent occurring events or
circumstances, or to changes in its expectations, except as may be required by
law. Although the company believes that the expectations expressed in these
forward looking statements are reasonable, they cannot assure you that their
expectations will turn out to be correct, and investors are cautioned that
actual results may differ materially from the anticipated results.
For more information, please contact:
China XD Plastics Company Ltd.
Mr. Taylor Zhang, CFO
Phone: +1-212-747-1118 (New York)
Mr. Allan Lao, IR Director
Phone: +86-451-8434-6600 (China)
Email: cxdc@chinaxd.net
CCG Investor Relations Inc.
Mr. Crocker Coulson, President
Phone: +1-646-213-1915 (New York)
Mr. Ed Job, CFA
Phone: +1-646-213-1914 (New York)
Email: ed.job@ccgir.com
Website: www.ccgirasia.com
SOURCE China XD Plastics Company Ltd.