TAIYUAN CITY, China, Dec. 14, 2010 /PRNewswire-Asia-FirstCall/ -- Longwei
Petroleum Investment Holding Ltd. (NYSE Amex: LPH) ("Longwei" or the "Company"),
an energy company engaged in the storage and distribution of finished petroleum
products in the People's Republic of China ("PRC"), today announced it has filed
an S-3 Registration Statement with the United States Securities and Exchange
Commission. The S-3 Registration Statement includes the registration of all
outstanding warrants and a shelf registration for the potential new issuance of
up to $50 million of the Company's securities.
The Company has filed to register the outstanding warrants associated with its
October 2009 financing (the "Financing"), including warrants issued to the
placement agents and warrants already exercised for cash. The Company currently
has 11,592,353 warrants outstanding with an exercise price of $2.255 per share.
"By registering all of our outstanding warrants associated with the Financing,
we have access to additional capital to expand our business plans. The warrants
can only be exercised 'for cash' when there is an effective registration
statement. These outstanding warrants are already factored into our fully
diluted EPS," stated Michael Toups, CFO of Longwei. "Since we are qualified as
an exchange-listed company, we have also included in the filing a shelf
registration for up to $50 million so that we are prepared to react to accretive
opportunities as our share price builds value."
Without an effective registration statement, the warrants could be exercised for
cash or on a cashless basis, which provided a formula to exercise the warrants
by exchanging additional warrants for fewer shares based on the trading price.
(Additional information on the cashless exercise can be found in the Company's
Current Report Form 8-K, filed with the SEC on November 2, 2009.) At the time of
the Financing, there were 14,849,202 warrants issued. To date, 1,295,030
warrants have been exercised for 1,295,030 common shares and $2.9 million in
cash proceeds to the Company. An additional 1,961,819 warrants have been
exercised on a cashless basis for 647,955 common shares.
The shelf registration included in the S-3 refers to the registration of
additional securities, which may be issued by the Company at a price and date to
be determined by the Company. Under the shelf registration, the registration of
a new issue can be prepared up to two years in advance, so that the issue can be
offered quickly as soon as market conditions are favorable or suitable use of
proceeds have been identified by the Company. By using a shelf registration, the
Company can fulfill its registration-related procedures beforehand and go to
market quickly when conditions become more favorable.
"We are positioning the Company to take advantage of strategic opportunities we
believe will become available to us in 2011. Our last acquisition has proven to
be very successful and we want to be prepared as we position the Company to
expand our offering and customer base," stated Mr. Cai Yongjun, Chairman and CEO
of Longwei.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in the
storage and distribution of finished petroleum products in the People's Republic
of China. The Company's oil and gas operations consist of transporting, storing
and selling finished petroleum products, entirely in the PRC. The Company's
headquarters are located in Taiyuan City, Shanxi Province. The Company has a
storage capacity for its products of 120,000 metric tons located at storage
facilities in Taiyuan and Gujiao, Shanxi. The Company's Taiyuan and Gujiao
facilities can store 50,000 metric tons and 70,000 metric tons, respectively.
The Company is 1 of 3 licensed intermediaries in Taiyuan and the sole licensed
intermediary in Gujiao that operates its own large-scale storage tanks. The
Company has the necessary licenses to operate and sell petroleum products not
only in Shanxi but throughout the entire PRC. The Company's storage tanks have
the largest storage capacity of any non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at competitive prices
with timely delivery to coal mining operations, power supply customers,
large-scale gas stations and small, independent gas stations. The Company also
earns revenue under an agency fee by acting as a purchasing agent for other
intermediaries in Shanxi, and through limited sales of diesel and gasoline at
two retail gas stations, each located at the Company's facilities. The Company
seeks to continue to expand its customer base and distribution platform through
the utilization of its large storage capacity, which allows the Company the
flexibility to take advantage of pricing, supply and demand fluctuations in the
marketplace.
For further information on Longwei Petroleum Investment Holding Limited, please
visit http://www.longweipetroleum.com. You may register to receive Longwei
Petroleum Investment Holding Limited's future press releases or request to be
added to the Company's distribution list by contacting Dave Gentry at
info@redchip.com.
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements are based on current expectations, estimates
and projections about Longwei's industry, management's beliefs and certain
assumptions made by management. Readers are cautioned that any such
forward-looking statements are not guarantees of future performance and are
subject to certain risks, uncertainties and assumptions that are difficult to
predict. Because such statements involve risks and uncertainties, the actual
results and performance of the Company may differ materially from the results
expressed or implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. Longwei's operations are conducted in the PRC and,
accordingly, are subject to special considerations and significant risks not
typically associated with companies inNorth AmericaandWestern Europe. These
include risks associated with, among others, the political, economic and legal
environment and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social conditions in the PRC
and by changes in governmental policies with respect to laws and regulations,
anti-inflationary measures, currency conversion, remittances abroad, and rates
and methods of taxation. Other potential risks and uncertainties include but are
not limited to the ability to procure, properly price, retain and successfully
complete projects, and changes in products and competition. Unless otherwise
required by law, the Company also disclaims any obligation to update its view of
any such risks or uncertainties or to announce publicly the result of any
revisions to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with the
Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial Officer
U.S. Office +1 727-641-1357
mtoups@longweipetroleum.com
http://www.longweipetroleum.com
Investor Relations:
Dave Gentry
RedChip Companies, Inc.
407-644-4256, Ext. 104
info@redchip.com
http://www.redchip.com
Source: Longwei Petroleum Investment Holding Ltd.
