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General Steel Provides Update On Private Placement Offering


General Steel Holdings, Inc. ("General Steel" or the "Company") (NYSE: GSI), a leading non-state-owned steel producer in China, today announced that the Company has received Renminbi equivalent of $7,500,000 in gross proceeds in connection with its previously announced private placement (the "Private Placement") with Henry Yu (the "Investor"), the Company's Chairman and Chief Executive Officer.

In the July 14, 2014 press release, the Company announced that it entered into a definitive subscription agreement (the "Subscription Agreement") for the Private Placement of its common stock, par value $0.001 per share ("Common Stock"), at a purchase price of $1.50 per share (the "Purchase Price") for total proceeds of $7,500,000 with the Investor.

The Company has fully received the fund transfer of Renminbi equivalent of $7,500,000 from the Investor, and is following standard procedure of stock issuance for a total of 5,000,000 shares of the Company's Common Stock to the Investor. Meanwhile, the Private Placement has been approved by shareholders as required under Section 312.03 of the NYSE listed company manual due to the number of shares being purchased. The Company expects to complete the Common Stock issuance and close the Private Placement soon.

The purchase and issuance of the Common Stock set forth above was exempt from the registration requirements of the Securities Act pursuant to Section 4(a)(2) of the Securities Act and Regulation D promulgated thereunder ("Regulation D"), based upon the representations made by the Investor that he was an "accredited investor" (as such term is defined under Rule 501 of Regulation D) and that he was purchasing such securities without a present view toward a distribution of the securities. In addition, there was no general advertisement conducted by the Company in connection with the sale of the securities.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the Securities Act and the applicable securities laws of any such state.

Posted-In: News Press Releases


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