CNEL.L Regulatory News (CNEL)

14 July 2020

China New Energy Limited

(the "Company" or "CNE") 

Global Offering, Issue of Equity and HKEx update

The Board of CNE (AIM: CNEL), the AIM quoted engineering and technology solutions provider to the bioenergy sector, is pleased to announce that it has raised funds of HK$80.95m (£8.28m) by way of a Hong Kong public offering and international placing ("Global Offering"), and that today is expected to be the last day of trading of the Company's shares on AIM.

Following a successful Global Offering, the Company now meets the criteria to list its securities on the Main Board of The Stock Exchange of Hong Kong Limited ("HKEx") and awaits final approval from HKEx, which is expected to be given during the course of the day in Hong Kong. If approval from HKEx is received today and the Global Offering has become unconditional on 15 July 2020, at 08:00 a.m. (HKT), trading of the Company's shares on HKEx will commence on 15 July 2020, at 09:00 a.m. (HKT) with stock code: 1156 and trading of the Company's shares on AIM will be cancelled from 07:30 a.m. (BST) the same day.

The Company has issued 82,600,000 ordinary shares representing 14.99 per cent. of the enlarged issued share capital, at a price of HK$0.98 (approximately 10.2p) to applicants of the Global Offering. Application will be made for the 82,600,000 new ordinary shares to be admitted to trading on HKEx on 15 July 2020.

Pursuant to the convertible loan agreement with Double River Limited, as announced on 30 April 2020, the Company has also issued 23,924,502 ordinary shares representing 4.34 per cent. of the enlarged issued share capital, at a price of approximately HK$ 0.481 (approximately 4.9p) to convert the Double River loan of HKD11,500,000 (approximately £1.18m) into equity.

Following this issue of equity pursuant to the Global Offering, the issued share capital of the Company will comprise 550,972,043 ordinary shares. The new ordinary shares will rank pari passu with the existing ordinary shares.

Commenting, Mr Yu, Chairman, said, "This is an exciting milestone for the Company; not only is dealing of the shares of the Company on the Main Board of the Hong Kong Stock Exchange a very prestigious event for the Company, but it will also provide access to capital to enable the Company to expand to its full potential and deliver long-term shareholder value. We would like to thank AIM, our Advisers and shareholders for their support whilst on AIM. The AIM market has enabled the Company to grow and demonstrate a 4 year track record of delivering profits that were necessary to qualify for the listing of the shares of the Company on the main board of the HKEx. We are delighted that many shareholders have elected to continue with the Company and look forward to continued success."

Issued Share Capital and Treasury Shares

In accordance with the Financial Conduct Authority's Disclosure and Transparency Rules, the Company hereby announces that, following admission, it will have 550,972,043 ordinary shares of £0.00025p each in issue, each share carrying the right to one vote. The Company does not hold any ordinary shares in treasury. The figure of 550,972,043 ordinary shares may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

Transfer of Shares to the HKEx

After the market closes today, subject to approval from the HKEx, the Company's registrar Computershare UK shall withdraw the Company's securities from CREST and transfer the share register to Computershare Hong Kong and the shares of the Company can be deposited into the Hong Kong Central Clearing and Settlement System (CCASS) to enable trading of its shares on the HKEx.

For investors who returned a valid election form and have selected the First Record Date of 30 June 2020 and have already withdrawn their securities from CREST, their Hong Kong share certificates shall be despatched in accordance with their instructions and available to trade on the HKEx at 09:00 (HKT) on the 15 July 2020.

For investors who have returned a valid election form and have selected the second record date of 14 July 2020, they may continue to trade their shares until 16:30 (BST) today, their Hong Kong share certificates will be despatched in accordance with their instructions and available to trade soon after the dealing of the shares of the Company on the HKEx commences.

For investors who did not return an election form, Hong Kong share certificates shall be sent to the registered address. For the avoidance of doubt, no shares will be cancelled.

Hong Kong Broker

The Company is responding to requests from shareholders for information on how they may continue to trade the Company's shares on the HKEx. A shareholder will require an account with a broker who is authorised to trade shares on HKEx. The Company notes that some UK brokers have international trading divisions that are authorised to trade on HKEx and it recommends that shareholders speak to their existing broker in the first instance as soon as possible.

For shareholders who require an authorised HKEx broker, the Company has identified Silverbricks Securities Company Limited ("Silverbricks") in Hong Kong which will open brokerage accounts for shareholders and facilitate continued trading. There is no minimum shareholding required. Shareholders will need to complete Silverbricks' account application form and supply requisite supporting identification documentation ("KYC") in compliance with Hong Kong securities law.

The Silverbricks' application form and KYC forms are available for download from the Company's website:

http://chinanewenergy.co.uk/uploads/soft/200615/1-2006151R250.docx

The Company advises that any reference above to third party brokers is for information only and it is not making any recommendations or providing any investment advice to shareholders who are recommended to seek their own financial advice immediately from their stockbroker, solicitor, accountant or other independent adviser authorised under the Financial Services and Markets Act 2000.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

For further information, please contact: