Result of Shareholder Offer

RNS Number : 3801O

Green Dragon Gas Ltd

05 March 2009

 



5 March 2009

GREEN DRAGON GAS LTD.

('Green Dragon' or the 'Company')

 US$9.63 MLLION RAISED IN SHAREHOLDER OFFER

Green Dragon Gas Ltd (AIM: GDG), the Chinese vertically integrated gas business, today announces that it has raised a total of US$9,626,478 at a price of US$3.68 per share from its current shareholders pursuant to the offer to shareholders ('Shareholder Offer') announced on 19 February 2009.

Mr. Randeep S. Grewal, the Company's Chairman & CEO, subscribed US$3 million of the total amount raised which was the maximum sum per shareholder allowed under the Shareholder Offer.  He will be issued with 815,217 ordinary shares of US$0.0001 each ('Ordinary Shares') pursuant to the Shareholder Offer.

In agreement with its bondholder, the Company redeemed US$2,350,000 of its outstanding convertible bonds and agreed to pay the balance outstanding of US$10,000,000 on 15 June 2009. 

Mr. Randeep S. Grewal, the Company's Chairman & CEO, commented: 

'With the addition of the funds raised by the Shareholder Offer, the Company has additional capital to fund its continued drilling programme whilst allowing the current Goldman Sachs initiative to proceed.  The Company will review all options that reflect the current operating successes, its independently verified reserves and the market environment and then decide on the best course of action to maintain continued growth for its shareholders.

'The independent directors' and my confidence in the Company's future is reflected in our collective and continued purchases of the Company's shares.' 

Application will be made for the 2,615,891 new Ordinary Shares to be issued pursuant to the Shareholder Offer to be admitted to trading on AIM and this is expected to become effective on 11 March 2009.

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

Randeep S. Grewal / Betty Cheung  -	[phone]
Dr Azhic Basirov / David Jones Nomad & Broker, Smith & Williamson	[phone]
Tim Redfern Broker, Evolution Securities	[phone]
Tim Thompson / Christian Goodbody Investor Relations, Buchanan	[phone]

 

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