China XD Plastics Company Ltd. (OTC: CXDC), the largest Chinese developer, manufacturer, and distributor of modified plastics primarily for use in the automotive applications in China, recently announced that it has entered into a private placement agreement with several institutional and individual investors to sell an aggregate 15,188 shares of convertible preferred stock, resulting in aggregate gross proceeds of approximately $15.2 million. The preferred stock is convertible into the Company's common stock at a price of $4.60 per share and will accrue cumulative dividends at the rate of 6% per annum until maturity on December 1, 2012.
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"We are excited to announce our financing, which demonstrates the confidence investors have in the Company and our prospects for the future," said Mr. Jie Han, Chairman and CEO of China XD Plastics. "We plan to use the proceeds mainly to fund our production capacity expansion program."
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. There shall not be any sale of these securities in any jurisdiction in which such offering would be unlawful. The securities offered and sold in the private placement have not been registered under the Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States absent registration, or an applicable exemption from registration under the Securities Act and applicable state securities laws.
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