New Investment

    RNS Number : 8740F
  Vision Opportunity China Fund Ltd
  15 October 2008
   

    NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE IN OR INTO THE UNITED STATES, CANADA, AUSTRALIA, REPUBLIC OF SOUTH AFRICA OR JAPAN


    Vision Opportunity China Fund Limited

    New Investment

    Vision Opportunity China Fund Limited ("VOC") (AIM:VOC.L) today announces it has invested $9,000,000 in China Bio Energy Holding Group
(OTCBB: CBEH) ("China Bio Energy"), an integrated fuel producer and distributor that utilizes an extensive distribution network to combine
bio-diesel production, petroleum wholesale, and retail gas (petrol) stations. Over the past two years, China Bio Energy's business has shown
significant growth. For the second quarter of 2008, total sales increased 326% to $58.4 million as compared to $13.7 million in the second
quarter of 2007; net income increased 484% to $8.3 million versus $1.4 million in the prior year period. For 2007, net revenue increased 60%
to $87.1 million as compared to $54.4 million in 2006; net income increased 61% to $8.6 million versus $5.3 million in the prior year
period. 

    In return for its investment, VOC received a Convertible Debenture in the principal amount of $9,000,000. The Debenture shall
automatically be exchanged for 2,465,753 shares of China Bio Energy's Preferred Stock once China Bio Energy receives shareholder approval to
authorise the issue of such shares. Once issued, Series B Convertible Preferred Shares shall be initially convertible into one share of
China Bio Energy's Common Stock for each share of Preferred Stock based upon a conversion price of $3.65 per share.

    The transaction will be described in more detail in an 8-K and other supporting documents to be filed by China Bio Energy with the
Securities and Exchange Commission.

    "We believe that with its established wholesale and retail distribution channel, secured access to raw materials, and its leadership
position in the bio-diesel industry in China, China Bio Energy is uniquely positioned to provide clean fuel to China while generating
tremendous growth and profitability for its shareholders" stated Adam Benowitz, the portfolio manager of VOC at Vision Capital Advisors,
LLC. 


    Enquiries to:

    Vision Opportunity China Fund Limited
    David Benway, Director / Adam Benowitz, Portfolio Manager
    www.vocfund.com/ Tel: [phone]

    Fairfax I.S. PLC
    James King/ Gillian McCarthy  Tel: [phone]

    Bankside Consultants Limited
    Simon Rothschild/Oliver Winters Tel: [phone]

    NOTE TO EDITORS
    Vision Opportunity China Fund Limited
    Vision Opportunity China Fund Limited ("VOC") is a closed-ended listed fund traded on AIM. VOC primarily invests directly in listed
companies with operations principally within Greater China.
    Greater China is a collective term for the territories administered by the People's
    Republic of China, those administered by the Republic of China and Singapore.

    China Bio Energy Holdings Group Co., Ltd 
    China Bio Energy is a distributor of petroleum-related products including gasoline (petrol), diesel, and heavy oil, and a manufacturer
and distributor of bio-diesel fuel. China Bio Energy's bio-diesel fuel is made at its 100,000-ton capacity facility in Shaanxi province.
Feedstock consists of naturally growing non-edible seeds and waste oil from restaurants. China Bio Energy's bio-diesel can be used as a
complete substitute for petro-diesel and can be blended with petro-diesel at any ratio. China Bio Energy's products are sold via its own
distribution network, which includes four fuel depots in Shaanxi that have both road and rail access.

This information is provided by RNS
The company news service from the London Stock Exchange
 
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