Reverse split approved by shareholders and to be effective jan.16,97
Tuesday December 31 3:01 PM EDT
China Resources shareholders approve reverse split
HONG KONG--(BUSINESS WIRE)--December 31, 1996--
- Preferred Stock Conversions And Equity Capital Raising Completed -
China Resources Development Inc , a leading natural rubber and agricultural products distributor based in the People's Republic of China (PRC), today announced that Company shareholders approved a one- for-ten reverse stock split at the annual shareholders meeting held December 30, 1996. The reverse split becomes effective January 16, 1997.
On December 13, 1996, the record date for the annual meeting, there were approximately 89,789,968 shares outstanding (of which 32 million shares are subject to substantial restrictions and are excluded from earnings per share calculations into the year 2003). The shares outstanding reflect that the entire offering of Series B Convertible Preferred stock (from which the Company raised gross proceeds of $16.53 million to finance expansion of its agricultural products distribution operations, repay short- term debt and better position the Company to pursue acquisitions) has been converted to CHRB Common Stock.
Following the reverse split there will be approximately 8.98 million common shares outstanding, 3.2 million of which will be restricted. Accordingly, the weighted average of common shares outstanding will be based on 5.78 million shares.
Yang Jiangang, chairman of China Resources Development, Inc., said, "Our corporate financial position is now significantly enhanced, and we are not contemplating further share offerings in the near future. We have reported record earnings for the first nine months of 1996, with net income already 50% above last year's level for the entire year. We anticipate net income for the full year to be in the range of $4.1 to $4.5 million and look forward to further bottom line growth in 1997 as we continue to seek higher margin business opportunities."
Except for the historical information in this press release, it includes forward-looking statements that involve risks and uncertainties, including, but not limited to the impact of weather, competitive pressures from within the natural rubber industry, quarterly fluctuations in results, the management of growth, market dynamics and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. Actual results may differ materially from management expectations.
China Resources Development, Inc., with offices in Hong Kong and the Hainan Province in the PRC, through a subsidiary, owns a 56% interest in Hainan Agricultural Resources Co. Ltd. natural rubber, liquid latex and other agricultural products, and procures production materials and supplies for major customers. The Hainan Province supplies over 60% of the PRC's natural rubber production.
CONTACT: Edward Wong
Financial Controller
011/852/28107205 or crdi@chrb.com
or
Joseph N. Jaffoni, Robert L. Rinderman
Jaffoni & Collins Incorporated
212/505-3015 or jciir@aol.com
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