China North East Petroleum closed its previously announced public offering of 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 also receive warrants to buy 800,000 shares of common stock, with an exercise price of $6.00 per share. The warrants are exercisable beginning six months after the transaction's closing.
Net proceeds from the offering are expected to be used to fund its future business expansion plan and for general working capital purposes.
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.
Mr. Hongjun Wang, Chairman and President of China North East Petroleum, commented, "We are very pleased to announce the closing of this offering. We believe this transaction will ensure the future expansion of our business presence in the private oil E&P industry in the China market place. We are encouraged by the strong interest and solid participation by reputable shareholders in our offering and we will work diligently to maximize shareholder value and reward their confidence in China North East Petroleum."
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