G3 Exploration Regulatory News (G3E)

30 Oct 2007 08:30

Green Dragon Gas Ltd30 October 2007 30 October 2007 GREEN DRAGON GAS LTD. ("Green Dragon" or "the Company") Issue of US$45m Zero Coupon Convertible Bond The Company announces that it has raised US$45 million through the issuance of aconvertible note with a zero coupon and a final maturity date of 25 October 2012("the Convertible Bond") to an institutional investor. The Convertible Bond isconvertible into the Company's ordinary shares at a conversion price of US$6.25per share, which represents an approximate 2% premium to the closing market bidprice of US $6.15 on 25 October 2007 ("Issue Date"). Under the terms of theConvertible Bond, the investing institution has the right to put the ConvertibleBond to the Company, under certain conditions, on the second anniversary of theIssue Date and at each anniversary thereafter until maturity at a redemptionprice of 100% of the principal amount, plus an annualised yield of 9% up to therelevant redemption date. The Company has the right on the second anniversarydate of the Issue Date and at each anniversary thereafter to call theConvertible Bond at a redemption price of 100% of the principal amount. In theevent that neither party exercises the put or the call option or any portion ofthe Convertible Bond has not been converted in part or in whole on or prior to25 October 2012 (the "Maturity Date"), then 100% of the principal amountoutstanding under the Convertible Bond, plus an annualised yield of 9% up to theMaturity Date, will be payable on the Maturity Date. Mr. Randeep S. Grewal, Chairman and CEO, comments, "Strong institutionalconfidence and interest in the Company complements the hard work beingaccomplished by our employees in the field while revalidating the core strengthon the of the Company's strategic business plan to be a vertically integratedclean gas supplier in China. We have been reviewing, planning and discussing theupcoming massive growth year of 2008. In view of the opportunities available tous, we have elected to raise additional funds to further strengthen theCompany's financial resources and provide us the capacity to make conclusivedecisions. With the funds on hand, we are ideally poised to make such decisionsand expect to make further announcements prior to the year end." For further information on the Company and its activities, please refer to thewebsite at www.greendragongas.com or contact: Randeep GrewalChairman and Chief Executive, Green Dragon Gas Ltd.+852 3710 0168 Tim Thompson/ Nick Melson/ Susannah GaleBuchanan Communications+ 44 (0)20 7466 5000 Dr Azhic Basirov/ David JonesSmith & Williamson Corporate Finance Limited+44 (0)20 7131 4000 This information is provided by RNS The company news service from the London Stock Exchange