Longwei Petroleum Warrants Expire
TAIYUAN CITY, China, Dec. 3, 2012 /PRNewswire-FirstCall/ -- Longwei Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the "Company"), an energy company engaged in the storage and distribution of finished petroleum products in the People's Republic of China ("PRC"), announced that 10,654,837 warrants outstanding associated with its October 29, 2009 financing (the "Warrants") have expired.
Longwei previously completed a private placement financing, principally with institutional investors, on October 29, 2009. At the time of the financing, the Company issued a total of 14.8 million Warrants exercisable at $2.255 per share. These investors have subsequently exercised approximately 4.1 million Warrants in total, of which 977,415 Warrants have been exercised in the past 60 days. A total of approximately 10.7 million Warrants have expired. The Company now has no warrants or stock options outstanding in its capital structure.
"We are pleased to have cleaned-up our capital structure and remain committed to building a strong company and creating value for our shareholders," said Cai Yongjun, Chairman and Chief Executive Officer of Longwei. "We are also honored to have been selected as the "Editor's Pick" for Global Investing on Seeking Alpha for the independent article entitled, 'Simply Put, Longwei Petroleum Worth $6 or More Per Share,' by Kevin Chen ( November 29, 2012).
The complete article can be found on the Seeking Alpha website: http://seekingalpha.com/article/1036491-simply-put-longwei-petroleum-worth-6-or-more-per-share?source=email_global_markets&ifp=0The Company believes it is well-positioned in the market and economic indicators in the PRC continue to improve. Standard & Poor's Rating Services ("S&P") on Thursday, November 28, 2012, affirmed the long-term credit rating of the PRC at "AA-" with a stable outlook. S&P said in its release that its PRC rating assessment was based on, "Strong economic growth potential, robust external position, and the government's relatively healthy fiscal position." Despite the conservative nature of the PRC's new Politburo Standing Committee, S&P credit analyst Kim Eng Tan said, "Efforts toward deepening structural and fiscal reforms are likely to continue." MarketWatch ( November 29, 2012). Longwei expects year-over-year revenue growth of approximately 26.6% to $646.3 million, and net income growth of approximately 24.2% to $77.6 million for the fiscal year ending June 30, 2013. This growth rate does not account for any external financing for inventory, which could accelerate growth. The growth is driven primarily by the ramp-up of the Huajie facility and organic growth at the Company's two existing facilities. Longwei recently reported revenues of US $133.4 million and non-GAAP net income of $18.3 million or $0.18 per share, adjusted for the non-cash warrant derivative liability charge, for the first fiscal quarter ended September 30, 2012. The Company's product sales volume increased 17.8% year-over-year to 110,587 metric tons during the quarter. As of September 30, 2012, the Company reported total assets of US $360.0 million and book value per share of $3.47. About Longwei Petroleum Investment Holding Limited
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