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China Shen Zhou Mining (SHZ) – Notable Share Transactions
BEIJING, November 9, 2012 /PRNewswire-FirstCall/ – China Shen Zhou Mining & Resources, Inc. (“China Shen Zhou”, or the “Company”) (NYSE Amex: SHZ), a company engaged in the exploration, development, mining and processing of fluorite, barite, zinc, copper, and other nonferrous metals in China, today announced that the Company has successfully entered into agreements with a group of institutional investors to redeem, and fulfill its dividend obligations with respect to 1,332 shares of Convertible Preferred Stock using $398,519.46 in cash, $391,764.48 of which will be used to redeem the Convertible Preferred Stock.
On March 26, 2012, the Company completed an offering of Series A Convertible Preferred Stock for gross proceeds of $5.0 million. The Company issued 5,000 shares of Series A Convertible Preferred Stock and warrants to purchase 1,960,785 shares of common stock of the Company at $2.05. The proceeds were used for the completion of the acquisition of several fluorite mines and processing plants as well as necessary infrastructure upgrades.
Per the terms of the Series A Convertible Preferred Stock, the Preferred Stock’s conversion price is subject to adjustment according to market price. The Company believes that the redemption with cash will disable the conversion of these shares of Preferred Stock to common stock and reduce dilution to other common stock shareholders.
Despite the current economic climate adversely affecting many resource companies in China whose important customers are steel and aluminum producers, the Company is making its best efforts to grow business, optimize cash flow and improve shareholder value.
Regarding the prior announcement of the Company from November 7th, the Company remains confident that it can provide the NYSE MKT LLC (the “Exchange”) with a satisfactory plan by November 30, and regain its compliance within the timeframe set forth by the Exchange.
2012-11-09 18:21:16
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