Shangfeng Cement announced in the evening of May 4 that the company had planned to issue no more than 149,751,068 shares in private at 7.32 yuan per share, raising no more than 109.61778 million yuan in total. After deducting the issuance expenses, the raised funds will be used for the company's 3,200 t/d clinker cement production line of Kurganchube Project in Tajikistan and the 3,200 t/d clinker cement production line of Andijan Project in Uzbekistan.
Moreover, since the disclosure of the plan for the non-public issuance of shares, the company has done a lot of work to promote the issuance, but because the 3200t/d clinker cement production line project in Kurganchube, Tajikistan, which is to be invested by the fund raised by the non-public issuance of shares, has not obtained the complete, legal and effective approval documents from the relevant approval departments in Tajikistan, there are significant risks in the implementation of the project. Moreover, the company and the project partners failed to reach an agreement on further cooperation to solve the problems existing in the project, resulting in the project can not continue to advance at present.
The project is one of the major projects to be invested by the proceeds raised from the non-public issuance of shares of the Company. In view of the substantial obstacles to the non-public issuance of shares of the Company caused by the above situation, after repeated communication with the target subscribers, financial advisers and other parties, and after careful study, the Company decided to terminate the non-public issuance of shares. The matter was considered and approved at the 35th meeting of the seventh session of the Board.
Due to the termination of the non-public offering of shares, On December 7, 2015, the Company cooperated with Zhejiang Shangfeng Holding Group Co., Ltd., Tongling Nonferrous Metals Group Holding Co., Ltd., Furun Holding Group Co., Ltd., Hangzhou Fenghe Investment Partnership (Limited Partnership), Hangzhou Shangyuan Investment Partnership (Limited Partnership), Hangzhou Shangjie Investment Partnership (Limited Partnership), The Subscription Agreement for Conditional Non-public Issuance of Shares signed by seven specific investors, including Zhang Chengjiang, is invalid at the same time.
The company said that although the company decided to terminate the non-public offering because of the potential major risks and obstacles of the Tajikistan project, it would still adhere to the established overall development strategy, continue to promote the layout of the main line of "the Belt and Road", speed up the preliminary work and construction of the projects in Kyrgyzstan and Uzbekistan, and actively carry out the project. Seek new development opportunities in the relevant areas of the main line, expand the company's product scale and influence in emerging markets, and create economic benefits. In addition to its own funds, the company will actively explore a variety of financing methods to raise funds to support and ensure the stable, healthy and rapid development of the company.
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