WUHAN CITY, China, July 12, 2012 /PRNewswire-Asia/ -- Kingold Jewelry, Inc. (NASDAQ: KGJI), one of China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products, today announced that Kingold's board of directors has authorized the repurchase of up to $10 million of issued and outstanding shares of Kingold's common stock in the open market or in privately negotiated transactions at any time and from time to time during the twelve-month period ending July 12, 2013. Kingold currently has approximately 53.4 million common shares outstanding.
Repurchases will be made under the plan using Kingold's own cash resources. These repurchases, if and when made, will be made subject to market conditions, applicable legal requirements (including federal and state securities laws as well as rules of the Securities and Exchange Commission) and other factors. This plan does not obligate Kingold to acquire any particular amount of common stock and the plan may be modified, extended or terminated at any time at Kingold's discretion.
Mr. Zhi Hong Jia, Chairman and Chief Executive Officer of Kingold, stated, "As reported in our filings with the Securities and Exchange Commission, the Company recently contemplated a secondary offering to help accelerate our growth, but given the decrease in our share price after the announcement of the offering, our management and Board determined that this was not in the best interest of the Company or its shareholders. In addition to growing our Company, it is our goal to enhance long-term stockholder value. We believe that our current share price presents an attractive investment opportunity and that it is prudent to establish a stock repurchase plan at this time. We remain steadfast in our confidence in Kingold's fundamentals as reflected with this share repurchase, and look forward to keeping shareholders apprised of our progress."This press release does not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor will there be any sale of these securities, in any state or other jurisdiction in which such offer, solicitation or sale is not permitted.