-3x Short China Regulatory News (CHNS)

9 Jun 2006 11:45

China Shoto plc09 June 2006 Press Release 9 June 2006 China Shoto plc ("China Shoto" or "the Company") Placing to raise £5.0 million China Shoto plc (AIM:CHNS), a leading Chinese producer of industrial batteriesand power supply systems, is pleased to announce that it has conditionallyplaced 3,143,750 new ordinary shares of 10 pence each in the capital of theCompany ("Ordinary Shares") at a price of 160 pence per share, raising a totalof £5.0 million (before expenses) for the Company. Application has been made toAIM for the new shares to be admitted to trading, which is expected to commenceon 12 June 2006. The proceeds of the placing will be used to: increase AGM battery productioncapacity as well as to provide working capital for the Group; extend the currentAGM product portfolio through an investment in Zhenghe Power Supply Company;purchase the power type battery business of Jiangsu Electric Wire and Cable Co.Ltd; and also to increase the Company's current 51% stake in Beijing Full ThreeDimension Power Engineering Co., Ltd ("FTD"). Commenting on the Placing, Cao Guifa, Executive Chairman of China Shoto plc,said: "We are delighted with the response and support shown by both new andexisting investors. The funds raised will allow China Shoto to undertake thenext stage of its business strategy. The first quarter of this year has shownstrong growth compared to the same period in 2005 with revenues up by 170% andprofit after tax showing an increase of 133%. As such we look forward to thefuture with considerable optimism." The Placing has been undertaken by Seymour Pierce Limited ("Seymour Pierce").The new ordinary shares will rank pari passu in all respects with the existingOrdinary Shares in issue. - Ends - For further information: China Shoto plcCao Guifa, Executive Chairman Tel: +44 (0) 20 7398 7700 www.chinashoto.com Seymour Pierce LimitedStuart Lane / John Depasquale Tel: +44 (0) 20 7107 8000jdp@seymourpierce.com www.seymourpierce.com Media enquiries:AbchurchHenry Harrison-Topham Tel: +44 (0) 20 7398 7700henry.ht@abchurch-group.com www.abchurch-group.com This information is provided by RNS The company news service from the London Stock Exchange