HONG KONG--(BUSINESS WIRE)--January 14, 1997--China Resources
Development, Inc. (Nasdaq: CHRB), a leading natural rubber and
agricultural products distributor based in the People's Republic of
China (PRC), today announced that its board of directors approved the
reclassification of 3.2 million shares (32 million shares prior to
the 1-for-10 reverse split - effective date January 16, 1997), that
were subject to substantial restrictions, as preferred shares. The
Board believes this action will serve to eliminate confusion as these
restricted shares are not freely tradable and would not have been
counted in earnings per share calculations until July 2003 because of
their inability to participate in dividends or liquidating
distributions. No changes to the substantive rights of the holders
of the restricted shares occurred as a result of the
reclassification. The number of common shares outstanding subject to
the reverse split will be approximately 5.78 million shares as all of
the Company's Series B convertible preferred shares have already been
converted and the above reclassification has been effected.
The CHRB stock symbol will also temporarily be changed to "CHRBD"
for 20 business days between January 16 and February 12 to remind
investors that the stock has undergone a one-for-ten reverse split,
and following this period, the symbol will revert back to CHRB.
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. (HARC). HARC markets and
distributes dry, 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
Jaffoni & Collins Incorporated
Joseph N. Jaffoni, Robert L. Rinderman
212/505-3015 or jci ir@aol.com |
