Issue of Equity

RNS Number : 4407C

Green Dragon Gas Ltd

07 March 2011

 



7 March 2011

GREEN DRAGON GAS LTD

("Green Dragon Gas" or "the Company")

USD 50m Equity Placing at USD 14.88 per share

Green Dragon Gas Ltd (AIM: GDG), one of the largest independent companies involved in the production of CBM gas and the distribution and sale of gas in China, announces that it has raised an additional USD50 million through the issuance of 3,360,000 ordinary shares of US$0.0001 each in the Company ("Ordinary Shares").  The new shares were placed by CLSA Limited at USD 14.88 per share, a premium over the last closing price.

It is expected that these new Ordinary Shares, which will rank pari passu in all respects with the existing Ordinary Shares, will be admitted to trading on AIM on 8 March 2011.  Following the placing, Green Dragon will have 132,748,586 Ordinary Shares in issue.

The Company intends to use the net proceeds from the placing for an identified acquisition.

Randeep Grewal, CEO and Founder, commented:

"This opportunity available to us in China has been actively pursued to enhance the inherent value that we believe the business offers to its shareholders. This will further the business model that we have systematically developed over many years. Each dilutive capital raise must be accretive to existing shareholders. We believe this current opportunity is too."

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

Stephen Hill, VP Corporate Communications Green Dragon Gas	[phone]
Dr Azhic Basirov / David Jones Nomad & Broker, Smith & Williamson Corporate Finance	[phone]
Judith Rawnsley Broker, CLSA	[phone]
Tim Redfern Broker, Evolution Securities	[phone]
Paul Connolly / John Dwyer / Steve Baldwin Broker, Macquarie Capital (Europe) Ltd	[phone]
Philip Dennis / James Henderson Investor Relations, Pelham Bell Pottinger	[phone]

 

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