18 September 2009
GEONG International Limited
("GEONG" or "the Company")
Placing to raise approximately £2.3 million
GEONG International Limited (AIM: GNG), the AIM listed China based provider of
enterprise content management (ECM) software and solutions, announces that it
has conditionally raised approximately £2.3 million (before expenses) by way of
a conditional Placing of 6,130,923 new Ordinary Shares at the price of 38p per
share. The Company intends that the net proceeds of the Placing will be used to
provide the Company with resources to pursue its growth prospects.
The Placing Shares have been conditionally placed with institutional and other
investors. Application has been made to the London Stock Exchange for the
Placing Shares to be admitted to trading on AIM. Subject, inter alia, to the
passing of Resolution 2 at the EGM, it is expected that Admission will become
effective and dealings in the Placing Shares will commence at 8:00am on 13
October 2009. The Placing Shares represent approximately 19.4 per cent of the
Company's existing issued share capital and will, when issued, represent
approximately 16.3 per cent of the Company's enlarged share capital. Following
the Admission, the Company will have 37,667,955 Ordinary Shares in issue.
The Placing is conditional upon, inter alia:
(i) Resolution 2 being duly passed at the EGM; and
(ii) Admission becoming effective on or before 31 October 2009.
The Placing Shares will rank pari passu in all respects with the Existing
Ordinary Shares, including the rights to all dividends and other distributions
declared following Admission, and will be credited as fully paid. The Placing
has not been underwritten.
As part of the Placing, certain Directors have agreed to subscribe for 301,974
Placing Shares in aggregate at the Placing Price, as follows:
Director Number of Placing Total shareholding Approximate % of
Shares immediately following Enlarged Ordinary
Share Capital
Admission
Mr Weidong Wang 210,527 5,061,671 13.4
Mr Minren Guan 78,947 1,027,413 2.7
Mr Amit Thakar 12,500 17,500 0.05
The Independent Directors, having consulted with Seymour Pierce, consider the
Placing of Shares with the Executive Directors, fair and reasonable insofar as
shareholders are concerned
The Extraordinary General Meeting which will be held on Monday, 12 October 2009
at 9:00am UK time at GEONG's Beijing office: GEONG International Limited,
Building 6, Area 8, Advanced Business Park, No. 188 South 4th Ring Road West,
Fengtai District, Beijing P.R.C. 100070.
A freephone conference call facility is being made available for shareholders
to participate in the EGM. If you are a shareholder and require dial in
details, please contact Hilary Millar hilary.millar@icisnet.com by email or by
telephoning +44 (0)20 7651 8688.
A copy of the notice of EGM which has been posted to shareholders today is
available from the Company's website at www.geong.com.
Weidong Wang, Chief Executive of GEONG, commented: "GEONG's growth prospects
continue to be extremely good, building on the 48% profit growth achieved last
year. We have recently signed a long term contract with Huawei and we are
confident of our ability to win and deliver similar contracts in the future.
Our order book has risen by more than 25 per cent. since 31 March 2009 and
currently stands at £13.6 million. With no debt and a fortified balance
sheet, the new funds will enable the Group to service large and long term
contracts, enhancing our future prospects. We therefore welcome our new
investors and look to the future with confidence."
For further information, please contact:
GEONG International Limited www.geong.com Tel: +86 10 5222 0999
Henry Tse, Chairman
Weidong Wang, CEO
Amit Thakar, CFO
Seymour Pierce Tel: +44 (0)20 7107 8000
John Depasquale
ICIS Tel: +44 (0)20 7651 8688
Bob Huxford
Hilary Millar
About GEONG International Limited
Operational since 2000, GEONG specialises in collaboration and content
management software and services. Its products are specifically tailored for
the Chinese market, where the Company is recognised by Government agencies and
numerous blue chip clients as a leader in its field. GEONG was named The Most
Successful Enterprise in ECM Software in China 2007 to 2008 by China's Centre
for Information Industry Development and CCID Consulting; and one of the
fastest growing companies in Asia at the Deloitte Technology Fast 50 China and
Deloitte Technology Fast 500 Asia Pacific awards. The Company has recently
expanded into North America setting up operations in Canada.
Registered in Jersey, the Company's operations are headquartered in Beijing.
The Company's shares were admitted to AIM in June 2006 and trade under the
ticker GNG.L
For more information, please visit www.geong.com