Attached files
| file | filename |
|---|---|
| 8-K - China Power Equipment, Inc. | chinapower8k120309.htm |
| EX-3.1 - China Power Equipment, Inc. | ex3-1.htm |
| EX-10.1 - China Power Equipment, Inc. | ex10-1.htm |
| EX-10.3 - China Power Equipment, Inc. | ex10-3.htm |
| EX-10.2 - China Power Equipment, Inc. | ex10-2.htm |
Exhibit
99.1
China Power Equipment, Inc.
15 Gaoxin 6th
Road, High-Tech Industrial Development Zone, Xi’an, China 710075
Telephone +86-29-8831-0282 • xa-fj@xa-fj.com
China Power Equipment Completes a $5 Million Equity
Financing
News release of
December 4, 2009 -- page 1
FOR
IMMEDIATE RELEASE
China
Power Equipment Completes a $5 Million Equity Financing
XI’AN,
China, December 4, 2009 /PRNewswire-Asia-FirstCall/ -- China Power Equipment,
Inc. ("China Power", OTC Bulletin Board: CPQQ), the manufacturer of a new
generation of energy saving electric transformer cores and transformers in the
People's Republic of China, is pleased to announce that it has successfully
completed a US$5 million equity offering in a private placement to certain
accredited investors.
The
investors purchased 4,166,667 shares of Series B convertible preferred stock
(the “Series B Preferred Stock”) in the aggregate and warrants to purchase a
total of 1,000,000 shares of China Power's common stock at an exercise price of
$2.40 per share, subject to adjustments. Each share of Series B Preferred Stock
can be converted into one share of China Power’s common stock at the option of
the holder. The Series B Preferred Stock does not pay annual dividends and shall
not have any voting rights except as required by law. The warrants are
exercisable for a period of three years from the date of issuance. Under the
terms of the warrants, China Power has the right of redemption and mandatory
exercise of the warrants under certain conditions.
China
Power will use the net proceeds in its Chinese operating subsidiary to expand
its amorphous alloy transformer core production primarily by completing the
current plant under construction, by improving existing production lines, and by
increasing working capital.
China
Power expects that its expanded capacity will help to meet the demand for its
amorphous alloy cores that is expected to increase at an increasing rate for
several years.
The high
demand is due to the Chinese government mandating amorphous alloy transformers
to gradually replace the country’s old steel core electric transformers because
the amorphous alloy units are far more energy efficient.
For
example, a typical amorphous alloy core transformer consumes 150 watts to
operate, which is 77.6 percent less electricity than a comparable silicon steel
core transformer, which requires 670 watts to operate.
China Power Equipment, Inc.
15 Gaoxin 6th
Road, High-Tech Industrial Development Zone, Xi’an, China 710075
Telephone +86-29-8831-0282 • xa-fj@xa-fj.com
China Power Equipment Completes a $5 Million Equity
Financing
News release of
December 4, 2009 -- page 2
Since an
amorphous alloy transformer consumes less electricity, it reduces the need to
generate electricity. In turn, less coal is burned to provide the same net
electricity to the consumers. The result is lower air pollution. To illustrate
the pollution reduction, compared to a silicon steel core transformer with the
same capacity, each amorphous alloy core transformer is estimated to reduce
pollutants from coal combustion each year by 3,972 kilograms of carbon dioxide,
120 kilograms of sulfur dioxide, and 60 kilograms of nitrous oxide. Both
transformers in this comparison are assumed to be operating at 315
kilovolt-amperes while stepping down 10,000 volts to 220 volts, which is the
consumer voltage in China.
Mr. Yong
Xing Song, Chairman of the Board of China Power Equipment, said, "We are very
pleased to complete this financing that will help continue our growth and
success in the high-growth amorphous alloy core business. Our capacity expansion
will enable us to win and deliver larger orders for transformer cores and to
generate very attractive positive operating cash flows. The positive cash flows
will also help us expand into our new line of amorphous core
transformers.
"Because
China is upgrading to amorphous alloy electric transformers in both urban and
rural areas, the demand for our amorphous alloy cores and transformers is
expected to continue to increase at an increasing rate for several
years."
Including
the common shares and warrants issued in this financing, China Power’s common
shares outstanding on a diluted basis were about 20.1 million shares on December
2, 2009.
The
documents relating to this private equity placement are available in China Power
Equipment’s recent filings with the Securities and Exchange Commission, which
are available from the SEC at www.sec.gov and from the company’s website at
www.chinapower-equipment.com.
China Power Equipment, Inc.
15 Gaoxin 6th
Road, High-Tech Industrial Development Zone, Xi’an, China 710075
Telephone +86-29-8831-0282 • xa-fj@xa-fj.com
China Power Equipment Completes a $5 Million Equity
Financing
News release of
December 4, 2009 -- page 3
About
China Power Equipment, Inc.
China
Power Equipment, Inc., through its wholly-owned subsidiary, Xi'an Amorphous
Zhongxi Co., Ltd., has developed a proprietary patented technology to produce a
new generation of energy saving transformers and transformer cores. The company
currently manufactures 40 models of
transformers in four product series that are sold throughout China. The
company was formed in 2006 as a U.S. corporation, and in November 2006,
created a Chinese subsidiary that was granted a license as a privately held
wholly owned foreign enterprise by the Chinese government.
Safe
harbor
Certain
statements in this release concerning our future growth prospects are
forward-looking statements, which involve a number of risks and uncertainties
that could cause actual results to differ materially from those in such
forward-looking statements.
The risks
and uncertainties relating to these statements include, but are not limited to,
risks and uncertainties regarding the success of our investments, risks and
uncertainties regarding fluctuations in earnings, our ability to sustain our
previous levels of profitability including on account of our ability to manage
growth, intense competition, wage increases in China, our ability to
attract and retain highly skilled professionals, time and cost overruns on
fixed-price, fixed-time frame contracts, client concentration, our ability to
successfully complete and integrate potential acquisitions, withdrawal of
governmental fiscal incentives, political instability and regional conflicts,
and legal restrictions on raising capital or acquiring companies
outside China.
Additional
risks that could affect our future operating results are more fully described in
our filings with United States Securities and Exchange Commission. These filings
are available at www.sec.gov.
We may,
from time to time, make additional written and oral forward-looking statements,
including statements contained in our filings with the Securities and Exchange
Commission and our reports to shareholders. We do not undertake to update any
forward-looking statements that may be made from time to time by or on our
behalf except as required by law.
China Power Equipment, Inc.
15 Gaoxin 6th
Road, High-Tech Industrial Development Zone, Xi’an, China 710075
Telephone +86-29-8831-0282 • xa-fj@xa-fj.com
China Power Equipment Completes a $5 Million Equity
Financing
News release of
December 4, 2009 -- page 4
The
securities issued in connection with the transaction described in this press
release have not been registered under the Securities Act of 1933, as amended
(the “1933 Act”), and may not be offered or sold in the United States absent
registration under the 1933 Act and applicable state securities laws or an
applicable exemption from those registration requirements. This press
release does not constitute an offer to sell or the solicitation of an offer to
buy any of the securities referenced herein in any jurisdiction to any
person.
For more
information on China Power Equipment please visit our website at
www.chinapower-equipment.com.
China Power Equipment, Inc.
15 Gaoxin 6th
Road, High-Tech Industrial Development Zone, Xi’an, China 710075
Telephone +86-29-8831-0282 • xa-fj@xa-fj.com
China Power Equipment Completes a $5 Million Equity
Financing
News release of
December 4, 2009 -- page 5
For more
information, please contact:
China
Power Equipment, Inc.
Mr.
Michael Segal
Telephone
+1-646-623-6999 (USA)
Email:
xa-fj@xa-fj.com
or
Christensen
Mr.
Yuanyuan Chen (English and Chinese)
Mobile
+86-139-2337-7882 in Beijing
ychen@christensenir.com
Mr. Tom
Myers (English)
Mobile
+86-139-1141-3520 in Beijing
tmyers@christensenir.com
Ms. Kathy
Li (English and Chinese)
Telephone
+1-212-618-1978 in the USA
kli@christensenir.com