After considering the situation thoroughly and consulting with the Company's legal counsel, the board of directors authorized this decision in the best interest of the Company and its shareholders. The Warrants have been extended under the same terms and conditions until November 29, 2012.
"We believe the Warrant proceeds, if exercised, will be beneficial to the Company as a means to grow our Huajie inventory level more quickly. Based on our inventory turnover and profit margin, we view this as a potentially accretive event for our shareholders," said
, Chief Financial Officer of Longwei. "Our trading price has been hovering around the Warrant strike price of
for the past week. Since the Warrants are close to being 'in-the-money,' we believe a short-term extension, given the unforeseen circumstances, actually reflects favorably on our confidence in the future stock price to trade higher than the current level."
The Company recently reported revenues of US
and net income of US
for the fiscal year ended
June 30, 2012
. At the
June 30, 2012
fiscal year-end, the Company reported total assets of US
and a book value per share of
Longwei expects year-over-year revenue growth of approximately 26.6% to
, and net income growth of approximately 24.2% to
, adjusted for the warrant derivative liability, for the fiscal year ending
June 30, 2013
. The growth is driven primarily by the ramp-up of the Huajie facility and organic growth at the Company's two existing facilities.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy company engaged in the storage and distribution of finished petroleum products in
the People's Republic of China
. The Company's oil and gas operations consist of transporting, storing and selling finished petroleum products, entirely in the PRC. The Company's headquarters are located in Taiyuan City,
. The Company has a storage capacity for its products of 220,000 metric tons located at three storage facilities within
: Taiyuan, Gujiao and Huajie, which have an individual storage capacity of approximately 50,000 metric tons ("mt"), 70,000mt, and 100,000mt, respectively. The Company has the necessary licenses to operate and sell petroleum products not only in
, but throughout the entire PRC. The Company's storage tanks have the largest storage capacity of any non-government operated entity in
The Company seeks to earn profits by selling its products at competitive prices with timely delivery to transportation companies, coal mining operations, power supply customers, large-scale gas stations and small, independent gas stations. The Company also earns revenue from agency fees by acting as a purchasing agent for other intermediaries in
, and through limited sales of diesel and gasoline at two retail gas stations, each located at the Company's Taiyuan and Gujiao facilities. The Company seeks to continue to expand its customer base and distribution platform through the utilization of its large storage capacity, which allows the Company the flexibility to take advantage of pricing, supply and demand fluctuations in the marketplace.
Longwei was recently named to the
list of "
's 200 Best Under a Billion" from a universe of 15,000 companies.
ranked the companies based on sales growth, earnings growth and return on equity in the past 12 months and over three years. As was reported, Longwei's three-year track record is 45% sales growth, 28% earnings per share growth and 28% return on equity. The
article can be found at:
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