China Recycling Energy Corporation Announces Completion of Warrant Exchange Offer
XI’AN, China, Nov. 25, 2019 (GLOBE NEWSWIRE) -- China Recycling Energy Corporation (Nasdaq: CREG ) (“CREG” or “the Company”), an industrial waste-to-energy solution provider in China, today announced that it had exchanged all remaining outstanding warrants that were issued to investors as part of two financings in 2018 and 2019 (the “2018 and 2019 Warrants”), respectively for shares of CREG’s common stock.
Mr. Guohua Ku, Chairman and Chief Executive Officer of CREG, said, “This exchange offer helped to eliminate all outstanding warrants issued to investors, thereby simplifying the Company’s capital structure for our shareholders and removing a significant stock overhang. As a result, we believe investors are now better able to value the business as we focus on new strategic growth initiatives.”
Pursuant to the agreements with the investors in connection with the two financings, the 2018 and 2019 Warrants were exercisable anytime until April and October 2024 respectively. This and other features had led to potential dilution to existing shareholders and had been considered a significant barrier for potential new investors.
The company negotiated exchange agreements with the holders of the 3,754,536 outstanding 2018 and 2019 Warrants, whereby all of such 2018 and 2019 Warrants were exchanged for 2,054,214 new shares of CREG’s common stock.
About China Recycling Energy Corp.
China Recycling Energy Corporation (Nasdaq: CREG ) (“CREG” or “the Company”) is based in Xi’an, China and provides environmentally friendly waste-to-energy technologies to recycle industrial byproducts for steel mills, cement factories and coke plants in China. Byproducts include heat, steam, pressure, and exhaust to generate large amounts of lower-cost electricity and reduce the need for outside electrical sources. The Chinese government has adopted policies to encourage the use of recycling technologies to optimize resource allocation and reduce pollution. Currently, recycled energy represents only an estimated 1 percent of total energy consumption and this renewable energy resource is viewed as a growth market due to intensified environmental concerns and rising energy costs as the Chinese economy continues to expand. The management and engineering teams have over 20 years of experience in industrial energy recovery in China.
Safe Harbor Statement
This press release may contain certain “forward-looking statements” relating to the business of CREG and its subsidiary companies. All statements, other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects” or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in these forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. Investors should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including, but not limited to, the risks and uncertainties associated with market conditions and the satisfaction of customary closing conditions relating to the registered direct offering and those discussed in the Company’s annual and periodic reports that are filed with the Securities and Exchange Commission and available on its website at http://www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Cathy Loos Impact IR Email: email@example.com Phone: +1-347-334-4135