Key Developments For China Natural Gas, Inc.
China Natural Gas, Inc. (CHNG.O) (Consolidated Issue listed on NASDAQ Global Market)
China Natural Gas Inc. Reaffirms FY 2009 Guidance
China Natural Gas Inc. reaffirmed its fiscal 2009 guidance and expects revenue to grow 15% to 20% to a range of $78-$83 million, from $68 million in fiscal 2008 and expects net income to grow 15% to 22% to a range of $17.5-$18.5 million, from $15.2 million in fiscal 2008.
China Natural Gas Inc. Announces Full Exercise of Over-Allotment Option
China Natural Gas Inc. announced that it has closed the sale of an additional 858,750 shares of common stock at the public offering price of $8.75 per share, pursuant to the over-allotment option exercised in full by the underwriter in connection with its public offering that closed on September 9, 2009. The exercise of the over-allotment option brings the total number of shares sold by China Natural Guess in this public offering to 6,583,750. The aggregate net proceeds received by the Company totaled approximately $54.7 million, after deducting underwriting discounts and commissions and the Company's roadshow travel expenses but before other expenses. Roth Capital Partners, LLC acted as the sole book runner for the offering, and Simmons & Company International acted as a co-manager for the offering. The net proceeds from the offering will be used for the construction of the Company's liquefied natural gas (LNG) facility, the acquisition of eight CNG fueling stations, the purchase of eight CNG trucks to transport CNG and the establishment of a joint venture company with China National Petroleum Corporation Kunlun Natural Gas Co., Ltd., as well as for general working capital purposes.
China Natural Gas Inc. Raises $50 Million in Public Offering of Common Stock
China Natural Gas Inc. announced that it has priced a public offering of 5,725,000 shares of its common stock, at $8.75 per share. The shares are being sold under the Company's previously filed shelf registration statement, which was declared effective by the Securities and Exchange Commission on August 20, 2009. Net proceeds, after underwriting discounts and commissions and expenses, will be approximately $47,339,063. China Natural Gas has granted the underwriters an option to purchase up to an additional 858,750 shares to cover over-allotments, if any. The offering is expected to close on September 9, 2009. The net proceeds from the offering will be used for the construction of the Company's liquefied natural gas (LNG) facility, the acquisition of eight CNG fueling stations, the purchase of eight CNG trucks to transport CNG and the establishment of a joint venture company with China National Petroleum Corporation Kunlun Natural Gas Co., Ltd., as well as for general working capital purposes. Roth Capital Partners, LLC is acting as the sole book runner for the offering. Simmons & Company International is acting as a co-manager for the offering.
China Natural Gas Inc. Reaffirms FY 2009 Guidance
China Natural Gas Inc. reaffirmed its fiscal 2009 guidance and expects revenue to grow 15% to 20% to a range of $78-$83 million, from $68 million in fiscal 2008 and expects net income to grow 15% to 22% to a range of $17.5-$18.5 million, from $15.2 million in fiscal 2008.
China Natural Gas Inc. Completes Joint-Venture Cooperation Agreement With China National Petroleum Corporation's CNPC Kunlun
China Natural Gas Inc. announced that the Company's variable interest entity Xi'an Xilan Natural Gas Co., Ltd. (Xilan) has completed a Joint-Venture Cooperation Agreement (JV Agreement) with China National Petroleum Corporation Kunlun Natural Gas Co., Ltd. (CNPC Kunlun), a wholly owned subsidiary of China National Petroleum Corporation (CNPC). The goal of the joint-venture (JV) is to establish a win-win strategic cooperation between Xilan and CNPC Kunlun, dedicated for the processing and distribution of CNG throughout China. The purpose of the JV will be to build and operate CNG compressor stations and fueling stations along CNPC's natural gas pipelines in China, sell compressed natural gas and provide vehicle conversion services from gasoline-fueled vehicles to hybrid (natural gas/gasoline) powered vehicles. CNPC Kunlun will hold 51% ownership of the JV, and Xilan will hold 49% ownership.
