Attached files
| file | filename |
|---|---|
| 8-K - New Oriental Energy & Chemical Corp. | v199544_8k.htm |
Exhibit
99.1
New
Oriental Energy & Chemical Corp. Announces Execution of Indebtedness
Conversion Agreement
XINYANG,
CHINA--(October 20, 2010) - New Oriental Energy & Chemical
Corp. (NASDAQ: NOEC) (the "Company"), a China-based specialty chemical
and emerging coal-based alternative fuel manufacturer, announced today it has
executed an Indebtedness Conversion Agreement (the “Agreement”) with Xinyang
Hongchang Channel Gas Engineering Co., Ltd. (the “Holder”), a shareholder of the
Company. Under the terms of the Agreement, the Company will issue to
the Holder 3,010,200 shares of common stock of the Company in lieu of a cash
payment of $US 3,010,200. The cash amount being converted to shares
represents payment to the Holder of a portion of a loan used by the Company to
fund construction of the Company’s methanol production facility.
The
Company reported that entry into this Agreement is a further step being taken by
the Company to achieve compliance with the NASDAQ Stock Market’s minimum
shareholder equity requirement of $US 2,500,000, as discussed by the Company in
a press release issued by the Company on September 1, 2010.
A more
detailed description of the Agreement is available in the Form 8-K the Company
filed with the U.S. Securities Exchange Commission today.
About New Oriental Energy &
Chemical Corp.
New
Oriental Energy & Chemical Corp. (NASDAQ: NOEC) is an emerging coal-based
alternative fuels and specialty chemical manufacturer based in Henan Province,
in the PRC. The Company's core products are urea and other coal-based chemicals
primarily utilized as fertilizers. Future growth is anticipated from its focus
on expanding production of coal-based alternative fuels, in particular,
methanol, as an additive to gasoline and dimethyl ether (DME), which has been a
cheaper, more environmentally friendly alternative to LPG for home heating and
cooking, and diesel fuel for cars and buses. All of the Company's sales are made
through a network of distribution partners in the PRC. Additional information on
the Company is available on its website at
www.neworientalenergy.com.
Safe
Harbor Statement
This
press release may contain forward-looking statements concerning New Oriental
Energy & Chemical Corp. The actual results may differ materially depending
on a number of risk factors including, but not limited to, the following:
general economic and business conditions, development, shipment, market
acceptance, additional competition from existing and new competitors, changes in
technology or product techniques, and various other factors beyond its control.
All forward-looking statements are expressly qualified in their entirety by this
Cautionary Statement and the risk factors detailed in the Company's reports
filed with the Securities and Exchange Commission. New Oriental Energy &
Chemical Corp. undertakes no duty to revise or update any forward-looking
statements to reflect events or circumstances after the date of this
release.
Contact:
Li
Donglai
Chief
Financial Officer
New
Oriental Energy & Chemical Corp.
Xicheng
Industrial Zone of Luoshan, Xinyang
Henan
Province, The People's Republic of China
Tel:
(011-86) 139-3764-6299