QINGDAO, China, May 9 /Xinhua-PRNewswire-FirstCall/ -- Sinoenergy Corporation (OTC Bulletin Board: SNEN), ("Sinoenergy" or the "Company"), a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as a designer, developer and builder of CNG stations in China announced that as of today, warrants to purchase a total of 11,089,286 shares of common stock have been exercised since February 2007, resulting in net proceeds of $11.3 million to the Company.
The exercise of these warrants strengthens Sinoenergy's balance sheet and provides the Company with the necessary funds to finance the build out of 30 CNG stations during 2007. Following the issuance of new shares upon exercise of these warrants as well as the conversion of shares of our convertible preferred stock, the Company has a total of 28.3 million shares outstanding.
"We view the exercise of these warrants issued in June 2, 2006 as a strong demonstration of confidence in the execution of our strategy as well as the outlook for our business. The nearly $3.3 million in net proceeds from the June 2006 private placement, together with the $11.3 million from the exercise of warrants, will provide us with the necessary liquidity to execute our business plan in 2007 to build 30 CNG filling stations in five cities in central and southeast China, and to create the foundation for Sinoenergy to become a leading CNG distributor in China," Mr. Bo Huang, Sinoenergy's Chief Executive Officer, said. "We expect the CNG retail business to become a major driver of Sinoenergy's revenue growth and profit enhancement in the near future, and we are very excited with the opportunities ahead for us to participate in the rapid growth of the CNG-powered vehicle market in China."
About Sinoenergy:
Sinoenergy is a manufacturer of compressed natural gas (CNG) vehicle and gas station equipment as well as a designer, developer and builder of CNG stations in China. In addition to its CNG related products, the Company also manufactures a wide variety of pressure containers for use in different industries, including the design and manufacture of various types of pressure containers in the petroleum and chemical industries, the metallurgy and electricity generation industries and the food and brewery industries.
Safe Harbor Statement
This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements, including but not limited to, the Company's ability to raise additional capital to finance the Company's activities; the effectiveness, profitability, and the marketability of its products; legal and regulatory risks associated with the share exchange; the future trading of the common stock of the Company; the ability of the Company to operate as a public company; the period of time for which its current liquidity will enable the Company to fund its operations; the Company's ability to protect its proprietary information; general economic and business conditions; the volatility of the Company's operating results and financial condition; the Company's ability to attract or retain qualified senior management personnel and research and development staff; and other risks detailed in the Company's filings with the Securities and Exchange Commission. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations, assumptions, estimates and projections about the companies and the industry. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or to changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward looking statements are reasonable, they cannot assure you that their expectations will turn out to be correct, and investors are cautioned that actual results may differ materially from the anticipated results.
For more information, please contact:
Sinoenergy Corporation
Ms. Laby Wu, CFO
Tel: +86-10-8492-8149
Email: labywu@gmail.com
CCG Elite Investor Relations Inc.
Mr. Crocker Coulson, President
Tel: +1-646-213-1915 (New York)
Email: crocker.coulson@ccgir.com
