New Environmental Energy to sell stock for USD 10m

(ADPnews) - Feb 25, 2011 - Chinese New Environmental Energy Holdings Ltd (HKG:3989) yesterday said it would offer 202 million shares, seeking net proceeds of HKD 78.8 million (USD 10.1m/EUR 7.3m).

The company will use the amount to repay debt and support its working capital. Originally active in the apparel and accessories business, New Environmental Energy expanded into the waste treatment and waste-to-energy sectors in December 2009.

The shares were priced at HKD 0.40 each, a 23.95% discount to the average closing price of the company's stock for the five trading days prior to the current placement agreement.

The price per share in the initial placing agreement, which was struck in December, was HKD 0.50, but New Environmental Energy revised the terms to reflect the prevailing market price of its stock. It also extended the placing period from February 28 to June 30.

(HKD 1 = USD 0.128/EUR 0.093)

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