New Oriental Energy & Chemical Corp. Announces Execution of Indebtedness Conversion Agreement
October 20 2010 - 4:05PM
Marketwired
New Oriental Energy & Chemical Corp.
(NASDAQ: NOEC) (the "Company"), a China-based specialty chemical
and emerging coal-based alternative fuel manufacturer, announced
today it has executed an Indebtedness Conversion Agreement (the
"Agreement") with Xinyang Hongchang Channel Gas Engineering Co.,
Ltd. (the "Holder"), a shareholder of the Company. Under the terms
of the Agreement, the Company will issue to the Holder 3,010,200
shares of common stock of the Company in lieu of a cash payment of
$US 3,010,200. The cash amount being converted to shares represents
payment to the Holder of a portion of a loan used by the Company to
fund construction of the Company's methanol production facility.
The Company reported that entry into this Agreement is a further
step being taken by the Company to achieve compliance with the
NASDAQ Stock Market's minimum shareholder equity requirement of $US
2,500,000, as discussed by the Company in a press release issued by
the Company on September 1, 2010.
A more detailed description of the Agreement is available in the
Form 8-K the Company filed with the U.S. Securities Exchange
Commission today.
About New Oriental Energy & Chemical
Corp.
New Oriental Energy & Chemical Corp. (NASDAQ: NOEC) is an
emerging coal-based alternative fuels and specialty chemical
manufacturer based in Henan Province, in the PRC. The Company's
core products are urea and other coal-based chemicals primarily
utilized as fertilizers. Future growth is anticipated from its
focus on expanding production of coal-based alternative fuels, in
particular, methanol, as an additive to gasoline and dimethyl ether
(DME), which has been a cheaper, more environmentally friendly
alternative to LPG for home heating and cooking, and diesel fuel
for cars and buses. All of the Company's sales are made through a
network of distribution partners in the PRC. Additional information
on the Company is available on its website at
www.neworientalenergy.com.
Safe Harbor Statement
This press release may contain forward-looking statements
concerning New Oriental Energy & Chemical Corp. The actual
results may differ materially depending on a number of risk factors
including, but not limited to, the following: general economic and
business conditions, development, shipment, market acceptance,
additional competition from existing and new competitors, changes
in technology or product techniques, and various other factors
beyond its control. All forward-looking statements are expressly
qualified in their entirety by this Cautionary Statement and the
risk factors detailed in the Company's reports filed with the
Securities and Exchange Commission. New Oriental Energy &
Chemical Corp. undertakes no duty to revise or update any
forward-looking statements to reflect events or circumstances after
the date of this release.
Contact: Li Donglai Chief Financial Officer New Oriental
Energy & Chemical Corp. Xicheng Industrial Zone of Luoshan,
Xinyang Henan Province, The People's Republic of China Tel:
(011-86) 139-3764-6299
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