New investment
26/04/2010 7:00am
UK Regulatory
TIDMVOC
RNS Number : 7467K
Vision Opportunity China Fund Ltd
26 April 2010
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART INTO THE UNITED
STATES,
CANADA, AUSTRALIA, SOUTH
AFRICA OR JAPAN
26 April 2010
Vision
Opportunity China Fund Limited
(the "Company" or "VOC")
New Investment
Vision Opportunity China Fund Limited (AIM: VOC.L), today announces that it has
invested $2.0 million in Silver Pearl Enterprises ("Silver Pearl") (OTCBB: SVPE)
as part of a $23.15 million financing by private placement. Simultaneously with
VOC's investment, Silver Pearl acquired all of the issued and outstanding
ordinary shares of Keyuan International Group Limited ("Keyuan International")
through a reverse merger.
Keyuan International conducts its business through its wholly-owned subsidiary
Keyuan Plastics Co., Ltd. ("Keyuan Plastics"), which is an independent,
China-based manufacturer of a wide range of petrochemical products, including
BTX aromatics, Styrene and Propylene.
Keyuan Plastics owns and operates an annual 550,000 metric tonne capacity
petrochemical facility in Ningbo, Zhejiang province, which commenced production
in October 2009. The net proceeds of the private placement are intended to be
used to finance the expansion of that facility to include a raw material
pre-treatment facility, additional storage capacity and an asphalt production
facility. Using a proprietary technology, Keyuan Plastics is able to use heavy
oil as opposed to the more expensive naphtha as the raw material to satisfy its
domestic customers' rising demand for petrochemical products.
Keyuan Plastics expects to generate, for the fiscal year ending 31 December
2010, revenue of $461.3 million and net income of $36.3 million, excluding
public company expenses. As a component of the private placement, Keyuan
Plastics' management entered into a make good provision which includes a
performance threshold of $33 million in net income for the current fiscal year,
as determined in accordance with GAAP, as adjusted for certain non-cash charges.
In return for its investment, VOC received the following:
a) Shares of Series A preferred stock convertible into 514,278 of Silver Pearl's
common stock;
b) 57,142 shares of Silver Pearl's common stock;
c) 3 year Series A Warrants to purchase up to 57,142 shares of Silver Pearl's
common stock at an exercise price
of $4.50 per share; and
d) 3 year Series B Warrants to purchase up to 57,142 shares of Silver Pearl's
common stock at an exercise price of $5.25 per share
This transaction will be described in more detail in an 8-K and other supporting
documents to be filed shortly by Silver Pearl with the Securities and Exchange
Commission.
For further information, please contact:
· Vision Opportunity China Fund Limited
Tel: +1 (212) 849 8225
David Benway / Adam Benowitz
www.vocfund.com
· Canaccord Adams Limited
Tel: +44 (0)20 7050 6500
Guy Blakeney / Sue Inglis
· Financial Dynamics
Tel: +44 (0)20 7269 7132
Ed Gascoigne-Pees / Ed Berry
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.
· Keyuan International Group Limited
Keyuan Plastics, Keyuan International's wholly-owned subsidiary located in
Ningbo, China, is a leading independent manufacturer and supplier of various
petrochemical products in China. Keyuan Plastics owns and operates a
petrochemical manufacturing facility with annual capacity of 550,000 metric
tonnes of a variety of petrochemical products, as well as facilities for the
storage and loading of raw materials and finished goods. Keyuan Plastics has a
manufacturing technology that can support the manufacturing process with low raw
material costs and high utilisation and yields. The management team of Keyuan
Plastics consists of petrochemical experts with proven track records from some
of China's largest state-owned enterprises in the petrochemical industry.
This information is provided by RNS
The company news service from the London Stock Exchange
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