Attached files
file | filename |
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8-K - WUHAN GENERAL GROUP (CHINA), INC | v205717_8k.htm |
EX-10.3 - WUHAN GENERAL GROUP (CHINA), INC | v205717_ex10-3.htm |
EX-10.1 - WUHAN GENERAL GROUP (CHINA), INC | v205717_ex10-1.htm |
EX-10.2 - WUHAN GENERAL GROUP (CHINA), INC | v205717_ex10-2.htm |
EX-10.4 - WUHAN GENERAL GROUP (CHINA), INC | v205717_ex10-4.htm |
EX-10.5 - WUHAN GENERAL GROUP (CHINA), INC | v205717_ex10-5.htm |
Exhibit
99.1
Contact:
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Wuhan
General Group (China), Inc.
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Mr.
Philip Lo, CFO
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Phone:
+ 86-27-5970-0067 (China)
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Email:
philip.lo@wuhangeneral.com
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www.wuhangeneral.com
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CCG
Investor Relations Inc.
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Ms.
Linda Salo, Sr. Financial Writer
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Phone:
+1-646-922-0894 (New York)
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Email:
linda.salo@ccgir.com
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Mr.
Crocker Coulson, President
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Phone:
+1-646-213-1915 (New York)
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Email:
crocker.coulson@ccgir.com
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www.ccgirasia.com
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For Immediate
Release
Wuhan
General Announces Recapitalization of
Outstanding
Warrants
Wuhan, Hubei Province, P.R.C.
December 14, 2010 – Wuhan General Group (China), Inc. (Nasdaq: WUHN)
("Wuhan General" or the "Company"), a leading manufacturer of industrial blowers
and turbines in China, operating through its subsidiaries, Wuhan Blower Co.,
Ltd. (“Wuhan Blower”), Wuhan Generating Equipment Co., Ltd. (“Wuhan Generating”)
and Wuhan Sungreen Environment Protection Equipment Co., Ltd. (“Wuhan
Sungreen”), today announced that it has entered into a series of agreements
designed to reduce the overhang of the Company’s Series A, B, C, AA, BB and JJ
warrants and to simplify the Company’s capital structure.
With
respect to the Series A and Series B warrants, each Series A and Series B
warrant holder was given the option to (i) sell all or part of such holder’s
warrant to Fame Good International Limited, the Company’s controlling
stockholder (“Fame Good”), for $0.50 per share of warrant stock and/or (ii)
exchange all or part of such holder’s warrant for the issuance by the Company of
0.5 shares of common stock per share of warrant stock. The Series A
and Series B warrant holders sold warrants to purchase an aggregate of 3,913,905
shares of common stock to Fame Good and exchanged warrants to purchase an
aggregate of 5,951,317 shares of common stock with the Company. The
warrant purchase closed on December 13, 2010, and the warrant exchange with the
Series A and Series B warrant holders, other than Fame Good, closed on the same
date.
In total,
Wuhan General will issue 4,932,609 shares of common stock in connection with the
recapitalization of the Series A and Series B warrants. This amount
includes 1,956,952 shares of common stock issuable to Fame Good upon the
exchange of the warrants that it purchased from certain of the Series A and B
warrant holders. The issuance of these shares to Fame Good is subject
to stockholder approval.
With
respect to its Series C, AA, BB and JJ warrants, the Company entered into a
warrant exchange agreement pursuant to which it offered to exchange all or part
of the Series C, AA, BB and JJ warrants for the issuance by the Company of (i)
1.372921615 shares of the Company’s common stock per share of Series C warrant
stock; (ii) 0.8203 shares of the Company’s common stock per share of Series AA
and Series BB warrant stock; and (iii) 0.8288 shares of the Company’s common
stock per share of Series JJ warrant stock. When the Series C, AA, BB
and JJ warrant recapitalization closes, the Company expects to issue an
additional 2,220,456 shares of common stock to the Series C, AA, BB and JJ
warrant holders. The issuance of these additional shares is subject
to stockholder approval.
Once all
of the shares have been issued in connection with the warrant recapitalization,
the Company will have approximately 32,505,015 shares of common stock
outstanding. After the completion of the transactions, the Company
will have one Series A warrant outstanding representing the right to purchase
128,755 shares of the Company’s common stock. The Company will no
longer have any Series B, C, AA, BB or JJ warrants outstanding.
“We are
pleased with the execution of these transactions, which we believe will enhance
the transparency of our financial performance and simplify our capital
structure, thereby improving our investors’ understanding of our business,” said
Mr. Qi Ruilong, Chief Executive Officer of Wuhan General.
About
Wuhan General Group (China), Inc.
Through
its subsidiaries, Wuhan Blower, Wuhan Generating and Wuhan Sungreen, Wuhan
General is a leading manufacturer of industrial blowers and turbines in China
and the Company is based in Wuhan, Hubei Province, China. Wuhan Blower is a
China-based manufacturer of industrial blowers that are principal components of
steam-driven electrical power generation plants. Wuhan Generating is a
China-based manufacturer of industrial steam and water turbines used for
electricity generation in coal, oil, nuclear and hydroelectric power plants.
Wuhan Sungreen manufactures silencers, connectors and other general parts for
industrial blowers and electrical equipment and produces general machinery
equipment. The Company's primary customers are from the iron and steel, power
generation, petrochemical and other industries. Led by a strong management team,
Wuhan General is well recognized for its technological sophistication and
quality construction of blowers and turbines. For more information, please visit
http://www.wuhangeneral.com.
Safe
Harbor Statement
Certain
statements in this press release, including statements regarding the impact of
the warrant recapitalization on Wuhan General and the closing of the
recapitalization of the Company’s warrants may be forward-looking in nature or
“forward-looking statements,” as defined by the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements involve known and unknown
risks and uncertainties, including all business uncertainties relating to
vulnerability of our business to general economic downturn, operating in the
People’s Republic of China (PRC) generally and the potential for changes in the
laws of the PRC that affect our operations, our failure to meet or timely meet
contractual performance standards and schedules, our ability to comply with
financial covenants in our loan agreement with Standard Chartered and other
factors that may cause actual results to be materially different from those
described in such forward-looking statements. Certain of these risks and
uncertainties are or will be described in greater detail in our filings with the
Securities and Exchange Commission. These forward-looking statements are based
on Wuhan General’s current expectations and beliefs concerning future
developments and their potential effects on the Company. There can be no
assurance that future developments affecting Wuhan General will be those
anticipated by the Company. Wuhan General undertakes no obligation to update or
revise any forward-looking statements, whether as a result of new information,
future events or otherwise, except as may be required under applicable
securities laws.
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