New Issue: New Dragon Asia closes $9.5 million sale of convertibles

By Sheri Kasprzak

New York, Dec. 22 - New Dragon Asia Corp. said it has completed a private placement for $9.5 million.

The company issued to Midsummer Investment, Ltd. and TerraNova Capital Partners, Inc. through subsidiary TN Capital Equities, Ltd. series B convertible preferred stock.

The 7% preferreds are initially convertible into a total of 5,937,500 common shares.

The investors will receive warrants for 2,968,750 shares, exercisable at $1.60 each for six years.

Based in Shenzhen, China, New Dragon mills, sells and distribute flour- and soybean-derived products in China.

Issuer:	New Dragon Asia Corp.
Issue:	Series B convertible preferred stock
Amount:	$9.5 million
Dividends:	7%
Conversion price:	$1.60
Conversion ratio:	Into 5,937,500 common shares
Warrants:	For 2,968,750 shares
Warrant expiration:	Six years
Warrant strike price:	$1.60
Investors:	Midsummer Investment, Ltd. and TerraNova Capital Partners, Inc. through subsidiary TN Capital Equities, Ltd.
Settlement date:	Dec. 22
Stock price:	$1.53 at close Dec. 22

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