Market Overview

China Recycling Energy Says $50M SEDA to Fund Business Growth

Related CREG
33 Stocks Moving In Wednesday's Mid-Day Session
35 Stocks Moving In Wednesday's Pre-Market Session

China Recycling Energy
Corp. (NASDAQ: CREG), a leading industrial waste-to-energy
solution provider in China, today announced that it has entered into a Standby
Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd. ("YA
Global"), a Cayman Islands exempt limited partnership on July 8, 2014.

Under the terms of the agreement, YA Global is committed to purchase up to
US$50 million of the Company's common stock over a period of 2 years following
the effectiveness of the registration statement registering the resale of
shares purchased by YA Global. The Company may in its discretion draw on the
facility from time to time by delivering an advance notice to YA Global. The
purchase price shall be set at 99% of the lowest daily volume weighted average
price of the Company's common stock during the five consecutive trading days
immediately following the delivery of the advance notice.

Mr. Guohua Ku, Chairman and CEO of CREG commented, "We are very pleased that
YA Global has agreed to partner with us to provide additional equity funding
to allow us to expand our business more rapidly. We have a strong backlog of
projects that we are confident we can successfully execute as long as we can
obtain adequate funding. This will allow us to expand our top and bottom lines
and further increase shareholder value. A Standby Equity Distribution
Agreement is an effective corporate financing instrument providing a flexible,
relatively low-cost source of capital, and limiting dilution to some extent
but compensated by increased project earnings for our current shareholders as

"This vote of confidence from YA Global comes on the back of new sales-type
lease agreement we signed at the end of the 2014 second quarter with Qitaihe
City Boli Yida Coal Selection Co., Ltd. This 15-year deal contributed sales of
systems revenues of about US$24.3 million to our second quarter. We expect to
receive about US$5.9 million of annual recurring cash flow receipts for 15

"Currently our 15 projects under sales-type lease agreement and our 6 projects
under construction are running smoothly. With such a strong pipeline and
support from the financial community, we believe we are well positioned to
grow our business as the Chinese government continues to focus on reducing
wasted energy and curbing pollution," concluded Chairman Ku.

Mr. Matthew Beckman, Managing Partner of YA Global, added, "CREG is committed
to providing comprehensive energy efficiency solutions to address continuously
increasing market demands in various energy intensive industries in China.
We're excited to be investing in CREG and working with their highly
experienced management team." 

Posted-In: News Financing Press Releases


Related Articles (CREG)

View Comments and Join the Discussion!