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
Investor Relations Contact:
Richard Cooper/ Linda Ni
Strategic Growth International
SOURCE Sino Gas International Holdings, Inc.