HONG KONG--(BUSINESS WIRE)--June 28, 1996--The board of directors
of China Resources Development Inc. (NASDAQ:CHRB), a Nevada
corporation with operations in the People's Republic of China,
announced Friday that all outstanding shares of its Series B
Convertible Preferred stock have now been converted by the holders
thereof into shares of common stock.
On March 11, 1996, the company announced that it had raised gross
proceeds of approximately $12,530,000.00 through a private offering
of shares of its Series B Convertible Preferred stock, which offering
was conducted outside of the United States in reliance on the
registration exemption provided by Regulation S, promulgated under
the U.S. Securities Act of 1933, as amended (the "Act"). CHRB's
Series B Convertible Preferred stock was convertible into common
stock pursuant to a formula based upon the market value of CHRB's
common stock. After the conversions, the company now has 41,528,000
shares of common stock outstanding.
The shares of common stock resulting from the conversions of
Series B Convertible Preferred stock have not been and will not be
registered under the Act and may not be offered or sold in the United
States absent registration or an applicable exemption from
registration requirements.
CHRB also announced that several of its controlling shareholders
have, among them, engaged in private transactions in the company's
stock. On May 1, 1996, Hong Wah Investment Holdings Ltd. sold
1,512,000 of its 3,672,000 shares of common stock to Worlder
International Co. Ltd., which now owns 3,510,000 shares of common
stock. Also, on June 10, 1996, Everbright Finance & Investment Co.
Ltd. purchased 2,432,000 shares of CHRB's Series A Preferred Stock
from Hong Wah Investment Holdings Ltd., 1,184,000 shares of Series A
Preferred Stock from Worlder International Co. Ltd. and 1,600,000
shares of Series A Preferred Stock from Silverich Ltd., resulting in
Everbright Finance & Investment Co. Ltd. owning all 6,400,000
outstanding shares of Series A Preferred Stock after the three
transactions.
China Resources Development Inc., through its majority-owned
operating subsidiaries in the People's Republic of China, markets and
distributes dry, natural rubber and liquid latex throughout China and
procures production materials and supplies for the Hainan State Farms
as well as other non-affiliated customers in Hainan Province.
CONTACT: Corporate Relations Group
Jim Spratt, 800/444-4980
or
China Resources Development Inc., Hong Kong
I.P. Zhang, 011-852-2537-6689
KEYWORD: NEVADA
INDUSTRY KEYWORD: BUILDING/CONSTRUCTION FOREST PRODUCTS |
