18 Sep 2009 16:48
18 September 2009 GEONG International Limited ("GEONG" or "the Company") Placing to raise approximately 2.3 million
GEONG International Limited (AIM: GNG), the AIM listed China based provider of enterprise content management (ECM) software and solutions, announces that it has conditionally raised approximately 2.3 million (before expenses) by way of a conditional Placing of 6,130,923 new Ordinary Shares at the price of 38p per share. The Company intends that the net proceeds of the Placing will be used to provide the Company with resources to pursue its growth prospects.
The Placing Shares have been conditionally placed with institutional and other investors. Application has been made to the London Stock Exchange for the Placing Shares to be admitted to trading on AIM. Subject, inter alia, to the passing of Resolution 2 at the EGM, it is expected that Admission will become effective and dealings in the Placing Shares will commence at 8:00am on 13 October 2009. The Placing Shares represent approximately 19.4 per cent of the Company's existing issued share capital and will, when issued, represent approximately 16.3 per cent of the Company's enlarged share capital. Following the Admission, the Company will have 37,667,955 Ordinary Shares in issue.
The Placing is conditional upon, inter alia:
(i) Resolution 2 being duly passed at the EGM; and (ii) Admission becoming effective on or before 31 October 2009.
The Placing Shares will rank pari passu in all respects with the Existing Ordinary Shares, including the rights to all dividends and other distributions declared following Admission, and will be credited as fully paid. The Placing has not been underwritten.
As part of the Placing, certain Directors have agreed to subscribe for 301,974 Placing Shares in aggregate at the Placing Price, as follows:
Director Number of Placing Total shareholding Approximate % of Shares immediately following Enlarged Ordinary Share Capital Admission Mr Weidong Wang 210,527 5,061,671 13.4 Mr Minren Guan 78,947 1,027,413 2.7 Mr Amit Thakar 12,500 17,500 0.05
The Independent Directors, having consulted with Seymour Pierce, consider the Placing of Shares with the Executive Directors, fair and reasonable insofar as shareholders are concerned
The Extraordinary General Meeting which will be held on Monday, 12 October 2009 at 9:00am UK time at GEONG's Beijing office: GEONG International Limited, Building 6, Area 8, Advanced Business Park, No. 188 South 4th Ring Road West, Fengtai District, Beijing P.R.C. 100070.
A freephone conference call facility is being made available for shareholders to participate in the EGM. If you are a shareholder and require dial in details, please contact Hilary Millar hilary.millar@icisnet.com by email or by telephoning +44 (0)20 7651 8688.
A copy of the notice of EGM which has been posted to shareholders today is available from the Company's website at www.geong.com.
Weidong Wang, Chief Executive of GEONG, commented: "GEONG's growth prospects continue to be extremely good, building on the 48% profit growth achieved last year. We have recently signed a long term contract with Huawei and we are confident of our ability to win and deliver similar contracts in the future. Our order book has risen by more than 25 per cent. since 31 March 2009 and currently stands at 13.6 million. With no debt and a fortified balance sheet, the new funds will enable the Group to service large and long term contracts, enhancing our future prospects. We therefore welcome our new investors and look to the future with confidence."
For further information, please contact:
GEONG International Limited www.geong.com Tel: +86 10 5222 0999Henry Tse, ChairmanWeidong Wang, CEOAmit Thakar, CFOSeymour Pierce Tel: +44 (0)20 7107 8000John DepasqualeICIS Tel: +44 (0)20 7651 8688Bob HuxfordHilary Millar
About GEONG International Limited
Operational since 2000, GEONG specialises in collaboration and content management software and services. Its products are specifically tailored for the Chinese market, where the Company is recognised by Government agencies and numerous blue chip clients as a leader in its field. GEONG was named The Most Successful Enterprise in ECM Software in China 2007 to 2008 by China's Centre for Information Industry Development and CCID Consulting; and one of the fastest growing companies in Asia at the Deloitte Technology Fast 50 China and Deloitte Technology Fast 500 Asia Pacific awards. The Company has recently expanded into North America setting up operations in Canada.
Registered in Jersey, the Company's operations are headquartered in Beijing. The Company's shares were admitted to AIM in June 2006 and trade under the ticker GNG.L
For more information, please visit www.geong.com
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GNG.L (GNG)