China Clean Energy Inc. (OTC Bulletin Board: CCGY), a producer of biodiesel fuel and environmentally-friendly specialty chemical products made from renewable resources, today announced the private placement of 10,000,000 shares of common stock at a price of $1.50 per share for $15 million.
The company also issued warrants to purchase up to 5,000,000 shares of its common stock, at an exercise price of $2.00 per share.
According to the company the proceeds will be used to build a 100,000 metric ton biodiesel plant at Jiangyin Industrial Park and for general corporate purposes.
According to a release stockholders of the company deposited an aggregate of 1.5 million shares of common stock into an escrow account to be disbursed, pro rata, among the investors should the company fail to begin the production of biodiesel at its currently proposed production facility in Jiang Yin on or before January 1, 2009, or the company fail to achieve at least $14,000,000 of adjusted net income during 2009.
"We are extremely pleased to announce the closing of this financing which marks an important milestone for China Clean Energy as it allows us to access additional low cost bank debt to fund our biodiesel capacity expansion plans, and to significantly accelerate the growth of our business in the quarters ahead," commented Mr. Tai-ming Ou, China Clean Energy’s Chairman and Chief Executive Officer.
The Company has agreed to file a registration statement with the United States Securities and Exchange Commission covering the shares of common stock and the shares underlying the warrants sold in the offering no later than forty-five days after the closing.
About China Clean Energy:
China Clean Energy, through its wholly-owned subsidiary, Fujian Zhongde Technology Co., Ltd., is engaged in the development, manufacturing, and distribution of biodiesel fuel and specialty chemical products made from renewable resources. Since its inception, the company has been engaged in the manufacture of specialty chemical products from renewable resources. Through its research and development efforts, the Company developed a proprietary process for refining biodiesel fuel from waste grease and certain vegetable oils. Using this proprietary process, China Clean Energy began producing biodiesel in 2005 and commenced selling biodiesel commercially starting in December 2005.
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