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Green Dragon Gas to raise $25 million, considering Hong Kong listing

Last updated: 09:54 19 Feb 2009 EST, First published: 10:54 19 Feb 2009 EST

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Green Dragon Gas (AIM:GDG), vertically integrated Coal Bed Methane (CBM) specialist with operations in China, announced that it would raise up to US$25 million at US$3.68 per share (approximately 254 pence).  Investors on the shareholder register of the company before 23 February 2009, and within jurisdictions where it would be legal to do so, will be entitled to subscribe up to maximum sum of $3 million.  Randeep Grewal, Chairman of Green Dragon Gas, has committed to taking his maximum allotment of $3 million.

In addition to the proposed fundraising, Green Dragon said it had engaged Goldman Sachs to evaluate additional financing options, including a secondary listing on the Hong Kong Stock Exchange.

A updated resources report is expected to announced before the end of February, the company added.

The proceeds of the placing will be used for working capital purposes and the repayment of the balance of a convertible bond.

“The imminent release of our updated year end 2008 Netherland Sewell report is expected to show the Company’s continued successes.  We believe the significance and accretive value of our proprietary horizontal SIS drilling technology will act as a catalyst for us and for the CBM industry in China.  The Company has decided to offer its shareholders the opportunity to subscribe to an offer of new shares in which I myself will be participating.  Green Dragon intends to benefit all stakeholders from the confluence of the Company’s longevity in the business to date, its technologies and China’s very significant domestic gas demand,” said Randeep Grewal, Chairman and CEO.



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