China North East Petroleum Holdings Limited has entered into definitive agreements to sell 4 million shares of its common stock at a price per share of $4.60 pursuant to a registered direct offering to several select institutional investors, representing gross proceeds of approximately $18.4 million.
Investors will also receive warrants to purchase 800,000 shares of China North East Petroleum Holding Ltd.'s common stock. The warrants have an exercise price of $6.00 per share and are exercisable beginning six months after the closing of the transaction and before the two and a half year anniversary of such initial issuance date. The closing of the offering is expected to take place on or about Friday, September 18th, 2009, subject to the satisfaction of customary closing conditions. China North East Petroleum Holdings Ltd. plans to use the net proceeds from the offering to fund its future business expansion plan, and for general working capital purposes.
The shares and warrants are being offered by China North East Petroleum Holding Ltd. pursuant to an effective shelf registration statement filed with the Securities and Exchange Commission dated September 9th, 2009. Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM - News), acted as the exclusive placement agent for the transaction.
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