China North East Petroleum Holdings Repays 8% Secured Debenture
China North East Petroleum Holdings Limited has repaid in full its 8% Secured Debenture plus accrued interest to Lotusbox Investments Limited Investor.
As of January 11, 2010, the total amount owed on the $15.0 million Secured Debenture issued in February 2008 was approximately $10.7 million, which includes remaining principal plus accrued interest. In addition to using the proceeds from its December 2009 public offering, the Company also applied the aggregate exercise price of approximately $2.0 million from Lotusbox's exercise of Series B Common Stock Purchase Warrants to offset the full repayment of the Secured Debenture. The Debenture would have matured on February 28, 2012. No early termination or prepayment penalties were incurred by the Company in connection with such termination.
Mr. Hongjun Wang, President of China North East Petroleum commented, "We are pleased to retire our debt obligations to one of our major investors. This transaction will strengthen our balance sheet and further enhance our capital structure ultimately providing us with greater flexibility to support our strategic expansion and development of new growth initiatives."
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