omniture

General Steel Holdings, Inc. Completes $40 Million Notes Offering

2007-12-17 22:19 1238


BEIJING, Dec. 17 /Xinhua-PRNewswire-FirstCall/ -- General Steel Holdings, Inc. (Amex: GSI), ("General Steel" and "the Company"), one of China's leading non-state owned steel products producer announced today that it raised $40 million through the issuance of senior convertible notes to institutional investors. The proceeds will be utilized for working capital, potential future acquisitions and the repayment of certain debt obligations.

As part of the private placement, on December 13, 2007 General Steel issued five-year senior convertible notes with an aggregate principal amount of $40 million, which carry an initial conversion price of $12.47 per share and pays interest at 3 percent per annum. The notes are secured through a pledge agreement of common shares owned by Mr. Zuo Sheng Yu. Additionally, investors in the private placement were granted 1,154,958 five-year warrants with a strike price of $13.51 per common share.

The Company may redeem the notes at 100 percent of the principal amount, plus any accrued and unpaid interest, beginning December 13, 2008 subject to certain conditions and stipulations detailed in the 8-K filed for this transaction. The Company is obligated to file an S-3 registration statement sixty calendar days from the formal closing.

Merriman Curhan Ford & Co. acted as lead placement agent, and FT Global Capital, Inc. acted as the co-placement agent for this transaction.

"General Steel Holdings is very pleased to complete this notes offering and believes it better positions the Company to capitalize on our future growth plans," stated Mr. Henry Yu, the Company's Chairman and CEO.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., headquartered in Beijing, operates a diverse portfolio of Chinese steel companies. With 3 million tons aggregate production capacity, its companies serve various industries and produce a variety of steel products including reinforced bar (rebar), hot-rolled carbon and silicon sheet and spiral-weld pipe. The Company has steel operations in Shaanxi province (central China), Inner Mongolia autonomous region (northwest China) and Tianjin municipality (northeast China).

Information Regarding Forward-Looking Statements

This press release may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements which will be made are based on management's current expectations or beliefs about future events and financial, political and social trends and assumptions it has made based on information currently available to it. The Company cannot assure that any expectations, forecasts or assumptions made by management in preparing these forward-looking statements will prove accurate, or that any projections will be realized. Such forward-looking statements may be affected by inaccurate assumptions or by known or unknown risks or uncertainties. Actual results may vary materially from those expressed or implied by the statements herein. For factors that could cause actual results to vary, perhaps materially, from these forward-looking statements, please refer to the Company's Form 8-K for specific details on this material event filed with the Securities and Exchange Commission on December 14, 2007. Forward-looking statements contained herein speak only as of the date of this release. The Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether to reflect new information, future events or otherwise.

For more information, please contact:

Ross Warner, General Steel Holdings, Inc.

Tel: +86-10-5879-7346 (Beijing)

Email: ross@gshi-steel.com

Skype: ross.warner.generalsteel

Matthew Hayden, HC International, Inc.

Tel: +1-858-704-5065

Email: matt@haydenir.com

Website: http://hcinternational.net

Source: General Steel Holdings, Inc.
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