General Chemical Sets Record Date, Subscription Price and Expiration Date for $10 Million Rights Offering

Apr 05, 2001, 01:00 ET from The General Chemical Group Inc.

    HAMPTON, N.H., April 5 /PRNewswire/ -- The General Chemical Group Inc.
 (NYSE:   GCG) today disclosed new information regarding its previously announced
 $10 million rights offering. The record date for the offering will be April
 16, 2001, and the offering will expire on May 11, 2001.
     The subscription price will be equal to the lower of (a) $0.75 per share
 or (b) 80% of the average closing price of General Chemical common stock on
 the New York Stock Exchange for the five consecutive trading days ending on
 the record date. The subscription ratio (i.e., the number of rights per share
 that General Chemical will issue to the holders of its common stock as of the
 close of business on the record date) will be a number that will result in the
 receipt by General Chemical of $10 million upon the issuance of all of the
 offered shares at the subscription price. The subscription price and ratio for
 the offering will be announced after the close of business on the record date.
 Paul M. Montrone, chairman of General Chemical's board of directors and
 beneficial owner of approximately 47% of General Chemical's common shares, has
 committed to purchase his pro rata portion of the shares being offered, as
 well as any shares offered to but not purchased by other shareholders.
     Each whole right received in the offering will entitle its holder to
 purchase common stock (based on the subscription ratio) for the subscription
 price. General Chemical will not issue fractional rights or shares. If the
 number of shares of common stock held by a shareholder on the record date
 would result in the receipt of fractional rights, the number of rights issued
 to that shareholder will be rounded up to the nearest whole number.
 Shareholders desiring to purchase shares in the offering must pay the
 subscription price in full prior to the expiration date of May 11, 2001. There
 will be significant restrictions on the transferability of the rights. Rights
 holders who exercise their rights in full also will have the opportunity to
 subscribe for additional shares of common stock that are not purchased by
 other rights holders.
     General Chemical expects that the registration statement on Form S-3 filed
 with the Securities and Exchange Commission relating to the rights and the
 underlying General Chemical stock will become effective on or about April 16,
 2001 and will be mailed to shareholders as soon as practicable thereafter.
 These securities may not be sold nor may offers to buy be accepted prior to
 the time the registration statement becomes effective. This notice shall not
 constitute an offer to sell or the solicitation of an offer to buy nor shall
 there be any sale of such rights of General Chemical stock in any state in
 which such offer, solicitation or sale would be unlawful prior to registration
 or qualification under the securities laws of any such state.
     General Chemical Group is a leading producer of soda ash, serving
 worldwide markets, and of calcium chloride, serving North American markets.
 Additional information about the company is available online at
 www.genchem.com.
     This announcement includes forward-looking statements. General Chemical
 has based these forward-looking statements on its current expectations and
 projections about future events. Although General Chemical believes that its
 assumptions made in connection with the forward-looking statements are
 reasonable, no assurances can be given that its assumptions and expectations
 will prove to have been correct. These forward-looking statements are subject
 to various risks, uncertainties and assumptions. General Chemical undertakes
 no obligation to publicly update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise. In light
 of these risks, uncertainties and assumptions, the forward-looking events
 discussed in this announcement might not occur.
 
 

SOURCE The General Chemical Group Inc.
    HAMPTON, N.H., April 5 /PRNewswire/ -- The General Chemical Group Inc.
 (NYSE:   GCG) today disclosed new information regarding its previously announced
 $10 million rights offering. The record date for the offering will be April
 16, 2001, and the offering will expire on May 11, 2001.
     The subscription price will be equal to the lower of (a) $0.75 per share
 or (b) 80% of the average closing price of General Chemical common stock on
 the New York Stock Exchange for the five consecutive trading days ending on
 the record date. The subscription ratio (i.e., the number of rights per share
 that General Chemical will issue to the holders of its common stock as of the
 close of business on the record date) will be a number that will result in the
 receipt by General Chemical of $10 million upon the issuance of all of the
 offered shares at the subscription price. The subscription price and ratio for
 the offering will be announced after the close of business on the record date.
 Paul M. Montrone, chairman of General Chemical's board of directors and
 beneficial owner of approximately 47% of General Chemical's common shares, has
 committed to purchase his pro rata portion of the shares being offered, as
 well as any shares offered to but not purchased by other shareholders.
     Each whole right received in the offering will entitle its holder to
 purchase common stock (based on the subscription ratio) for the subscription
 price. General Chemical will not issue fractional rights or shares. If the
 number of shares of common stock held by a shareholder on the record date
 would result in the receipt of fractional rights, the number of rights issued
 to that shareholder will be rounded up to the nearest whole number.
 Shareholders desiring to purchase shares in the offering must pay the
 subscription price in full prior to the expiration date of May 11, 2001. There
 will be significant restrictions on the transferability of the rights. Rights
 holders who exercise their rights in full also will have the opportunity to
 subscribe for additional shares of common stock that are not purchased by
 other rights holders.
     General Chemical expects that the registration statement on Form S-3 filed
 with the Securities and Exchange Commission relating to the rights and the
 underlying General Chemical stock will become effective on or about April 16,
 2001 and will be mailed to shareholders as soon as practicable thereafter.
 These securities may not be sold nor may offers to buy be accepted prior to
 the time the registration statement becomes effective. This notice shall not
 constitute an offer to sell or the solicitation of an offer to buy nor shall
 there be any sale of such rights of General Chemical stock in any state in
 which such offer, solicitation or sale would be unlawful prior to registration
 or qualification under the securities laws of any such state.
     General Chemical Group is a leading producer of soda ash, serving
 worldwide markets, and of calcium chloride, serving North American markets.
 Additional information about the company is available online at
 www.genchem.com.
     This announcement includes forward-looking statements. General Chemical
 has based these forward-looking statements on its current expectations and
 projections about future events. Although General Chemical believes that its
 assumptions made in connection with the forward-looking statements are
 reasonable, no assurances can be given that its assumptions and expectations
 will prove to have been correct. These forward-looking statements are subject
 to various risks, uncertainties and assumptions. General Chemical undertakes
 no obligation to publicly update or revise any forward-looking statements,
 whether as a result of new information, future events or otherwise. In light
 of these risks, uncertainties and assumptions, the forward-looking events
 discussed in this announcement might not occur.
 
 SOURCE  The General Chemical Group Inc.