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Jan. 11, 2013 /PRNewswire/ --
Kingold Jewelry, Inc. (NASDAQ: KGJI), ("Kingold" or the "Company"), one of
China's leading manufacturers and designers of high quality 24-karat gold jewelry, ornaments and investment-oriented products,
today announced that the Company has entered into a Subscription Agreement ("Agreement") with three individuals providing for the sale of 7,000,000 shares of its common stock at a price of
$1.80 per share for gross proceeds of
The Company also issued to the investors, on a pro rata basis, warrants to purchase up to an additional 2,800,000 shares of its common stock at an exercise price of
$1.80, which warrant is not cashless exercise but is exercisable at any time in whole or in part for twelve months following the date of the Agreement. The Company intends to use the proceeds from this transaction to purchase additional raw materials for its products, working capital and other general corporate purposes.
Zhihong Jia, Chairman and CEO of Kingold Jewelry, Inc. stated, "We were pleased to reach an agreement that will allow our Company to accelerate its growth. While the terms were at a significant discount to the Company's book value, the shares sold at a purchase price higher than our closing price. The principle investors in this transaction have followed Kingold prior to its initial public offering and have held a long-standing belief in the Company's fundamentals and prospects in
China's gold market. We look forward to keeping investors apprised of our progress in the coming weeks."
About Kingold Jewelry, Inc.Kingold Jewelry, Inc. (NASDAQ: KGJI), centrally located in
China's fourth largest city, was founded in 2002 and today is one of
China's leading designers and manufacturers of 24-karat gold jewelry, ornaments and investment-oriented products. The Company sells both directly to retailers as well as through major distributors across
China. Kingold has received numerous industry awards and has been a member of the Shanghai Gold Exchange since 2003. For more information, please visit
Business Risks and Forward-Looking StatementsThis press release contains forward-looking statements that are subject to the safe harbors created under the Securities Act of 1933 and the Securities Exchange Act of 1934. Readers are cautioned that actual results could differ materially from those expressed in any forward-looking statements. In addition, please refer to the risk factors contained in Kingold's SEC filings available at
www.sec.gov, including Kingold's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are cautioned not to place undue reliance on any forward-looking statements, which speak only as of the date on which they are made. Kingold undertakes no obligation to update or revise any forward-looking statements for any reason.
Company ContactKingold Jewelry, Inc.Bin Liu, CFO+1-847-660-3498 (US) / +86-27-6569-4977 (
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SOURCE Kingold Jewelry, Inc.