China Recycling Energy, a provider of waste-to-energy solutions, has entered into a Standby Equity Distribution Agreement (SEDA) with YA Global Master SPV of Cayman Islands.
As per the agreement, YA Global has to purchase US$50 million of the company stock over a period of 2 years with the effectiveness of the registration statement of resale of shares purchased by YA Global.
The company, on its maturity may draw on the facility by delivering a prior notice. The purchase price shall be set at 99 percent of the lowest daily volume weighted average price of the common stock on five consecutive trading days.
Guohua Ku, chairman, CEO, CREG, commented, “YA Global will provide equity funding for the business growth through this partnership. We can execute this project provided adequate funding is ensured. This will help in expanding top and bottom lines increasing shareholder value.”
SEDA, a corporate financing instrument providing flexible, low-cost capital source limiting dilution, compensates for increased project earnings for current shareholders. Around US$5.9 million of annual cash flow is expected for 15 years, added Ku.
Mr. Matthew Beckman, managing partner, YA Global, said, “CREG is committed to providing comprehensive energy efficiency solutions to address increasing market demands in various energy intensive industries in China.”
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