26 June 2017
GREEN DRAGON GAS LTD.
("Green Dragon Gas" or the "Company")
GIC US$50 million Convertible Bond Update
Green Dragon Gas Ltd. (LSE: GDG), one of the largest independent companies involved in the production and sale of Coal Bed Methane (CBM) gas in China, is pleased to announce that it has reached agreement with GIC Private Limited ("GIC") to extend the exercise date of the put option attached to the US$50 million convertible bond (the "Bond") due on 31 December 2020 from 26 June 2017 to 27 October 2017.
The Bond is partially convertible into ordinary shares at a one-time redemption option exercisable by GIC at a conversion price of US$2.83 per share. GIC currently owns 5,775,578 shares or 3.7% of the Company and is restricted to a maximum of 10,775,578 or 6.69% following such conversion.
At final maturity of the Bond, GIC has the right to require the Company to purchase its conversion shares at a price based on the 90 day VWAP calculated as of 31 December 2020 and to be settled prior to 30 April 2021.
Randeep S. Grewal, Chairman and Founder of Green Dragon Gas, commented: "We are very pleased with the continued support from GIC. The extension of the put option exercise date allows the Company to focus our efforts on executing our strategic objectives, outlined in our annual report, which is to monetise the Company's substantial unrecognised value for our stakeholders. We are confident in achieving these objectives."
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For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:
Edward Westropp / Kim Camilleri / Elizabeth Burnham / Ntobeko Chidavaenzi
Tel: +44 20 3727 1000
Richard Crichton / Ross Allister
Tel: +44 20 7418 8900
About Green Dragon Gas Ltd
Green Dragon Gas is a leading independent gas producer with operations in China and is listed on the main market of the London Stock Exchange (LSE: GDG). The Company has 559 Bcf of 2P reserves and 2,386 Bcf of 3P reserves across eight production blocks covering over 7,566 km² of license area in the Shanxi, Jiangxi, Anhui and Guizhou provinces. It holds six Production Sharing Agreements with strong, highly capitalised Chinese partners including CUCBM (CNOOC), CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production.
This information is provided by RNS