China North East Petroleum Holdings Ltd. signed an agreement to sell 1.9 million shares of its common stock to a group of institutional investors. The company issued the shares at $6.875 per share, raising gross proceeds of $13.5 million.
China North East Petroleum Holdings Ltd. also issued warrants to purchase 392,728 shares of common stock at a price of $8.10 per share. The warrants can be exercised six months after the transaction closes, and expires 30 months after that date. The company said it would use the proceeds to redeem an 8% bond issue that was outstanding and for general corporate purposes.
China North East Petroleum Holdings Ltd. is a non-state owned exploration and production company that operates under Long De Oil & Gas Development Co. Ltd and theYu Qiao Oil & Gas Development Co. Ltd, its two wholly owned subsidiaries. The company has 250 producing oil wells located in four oil fields in China, and also owns an oil services and drilling business.