Company inks agreement with investor MSPEA Modified Plastics Holding
By Devika Patel
Knoxville, Tenn., Aug. 15 - China XD Plastics Co. Ltd. completed a $100 million private placement of series D junior convertible redeemable preferred stock on Aug. 15, according to an 8-K filed Monday with the Securities and Exchange Commission.
The company sold 16 million preferreds to MSPEA Modified Plastics Holding Ltd. at $6.25 per preferred. The preferreds are initially convertible into common stock at $6.25 per share, which is an 88.25% premium to the Aug. 12 closing share price of $3.32. The price at per preferred is also an 88.25% premium to that price.
Holders of the preferreds will participate in common stock dividends on an as-converted basis. In connection with the transaction, MSPEA will designate two members to be elected to the company's board of directors.
"This investment will enable us to accelerate our domestic capacity expansion and production line upgrade plans and invest in developing new products to better satisfy the demand for our products in the market," chairman and chief executive officer Jie Han said in a press release.
China XD Plastics, based in New York, is a plastics manufacturer.
| Issuer: | China XD Plastics Co. Ltd.
|
| Issue: | Series D junior convertible redeemable preferred stock
|
| Amount: | $100 million
|
| Preferreds: | 16 million
|
| Price: | $6.25
|
| Conversion price: | $6.25
|
| Conversion premium: | 88.2%
|
| Warrants: | No
|
| Investor: | MSPEA Modified Plastics Holding Ltd.
|
| Settlement date: | Aug. 15
|
| Stock symbol: | Nasdaq: CXDC
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| Stock price: | $3.32 at close Aug. 12
|
| Market capitalization: | $222.89 million
|
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