Convertible preferreds deal to fund increased production projections
By Devika Patel
Knoxville, Tenn., Sept. 29 - Keyuan Petrochemicals, Inc. said it completed a private placement of 540,001 units via agent TriPoint Global Equities, LLC. The lead investor was Prax Capital.
The company raised $20.3 million by selling units of 10 series B convertible preferred shares and three warrants. The units each contain 1.5 class C warrants and 1.5 class D warrants.
Each class C warrant is exercisable at $4.50, a 5.26% discount to the Sept. 28 closing share price of $4.75. Each class D warrant is exercisable at $5.25, a 10.53% premium to the Sept. 28 share price.
"We are delighted to add Prax Capital as a strategic shareholder," Keyuan chairman and chief executive officer Chungfeng Tao said in a press release.
"With a successful track record of helping emerging companies and extensive network of entrepreneurs and investors in China, Prax will be a tremendous financial and strategic asset to Keyuan.
"While we have adequate capital to meet our growth plans, the $20.3 million investment gives us supplementary financial flexibility to secure additional raw materials at favorable prices to run through our recently increased production projection of 660,000 metric tons," Tao added.
"We are very attracted by Keyuan's unique technology and its entrepreneurial management team; a rare combination in the petrochemical sector in China," Prax Capital partner Lei Xu added in the release.
"We look forward to a long-term partnership with Mr. Tao and his team to grow Keyuan into a leading non-State-owned petrochemical company in China."
Keyuan, located in Ningbo, China, is a petrochemical company.
| Issuer: | Keyuan Petrochemicals, Inc.
|
| Issue: | Units of 10 series B convertible preferred shares and three warrants
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| Amount: | $20.3 million
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| Units: | 540,001
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| Warrants: | Three warrants per unit (1.5 class C warrants, 1.5 class D warrants)
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| Warrant strike price: | $4.50 (class C), $5.25 (class D)
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| Agent: | TriPoint Global Equities, LLC
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| Investor: | Prax Capital (lead)
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| Settlement date: | Sept. 29
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| Stock symbol: | Nasdaq: KEYP
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| Stock price: | $4.75 at close Sept. 28
|
| Market capitalization: | $14.63 million
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