Attached files
| file | filename |
|---|---|
| 8-K - GENERAL STEEL HOLDINGS INC | v169951_8k.htm |
| EX-1.1 - GENERAL STEEL HOLDINGS INC | v169951_ex1-1.htm |
| EX-5.1 - GENERAL STEEL HOLDINGS INC | v169951_ex5-1.htm |
| EX-4.1 - GENERAL STEEL HOLDINGS INC | v169951_ex4-1.htm |
| EX-10.1 - GENERAL STEEL HOLDINGS INC | v169951_ex10-1.htm |
| EX-10.2 - GENERAL STEEL HOLDINGS INC | v169951_ex10-2.htm |
| EX-10.4 - GENERAL STEEL HOLDINGS INC | v169951_ex10-4.htm |
| EX-10.3 - GENERAL STEEL HOLDINGS INC | v169951_ex10-3.htm |
EXHIBIT
99.1
General
Steel Holdings, Inc. Announces $25.0 Million Securities Offering
Beijing,
China, December 24, 2009 -- General Steel Holdings, Inc. (“General Steel” or
“the Company”) (NYSE: GSI), one of China’s leading non-state-owned producers of
steel products and aggregators of domestic steel companies, has entered into
definitive agreements to sell 5,555,556 shares of the Company’s
common stock (“Common Stock”) and warrants to purchase up to 2,777,778 shares
of Common Stock to institutional investors for aggregate gross
proceeds of $25.0 million. The offering is made pursuant to the Form S-3 shelf
registration statement that was filed by General Steel with the Securities and
Exchange Commission (the “SEC”) and declared effective by the SEC on October 22,
2009. General Steel intends to use the net proceeds from the offering for
general corporate purposes which may include working capital, capital
expenditures, acquisitions of new businesses and investments.
The
securities are being offered in “units” at a price of $4.50 per unit. Each unit
consists of one share of Common Stock and a two and one half year warrant to
purchase 0.50 of an additional share of Common Stock. The warrants have an
exercise price of $5.00 per share and are exercisable commencing six months and
one day after closing.
Certain
anti-dilution adjustment provisions contained in the Company’s common stock
purchase warrants originally issued on December 13, 2007 (“December 2007
Warrants”) may have been triggered by the Company’s sale of the
units. Rather than giving full effect to the anti-dilution
provisions, the Company and the holders of the December 2007 Warrants entered
into an agreement whereby the aggregate number of shares of common stock
issuable upon exercise of the December 2007 Warrants is increased from 1,154,958
shares to 3,900,871 shares, and the exercise price of the December 2007 Warrants
was reduced from $13.51 per share to $5.00 per share.
Rodman
& Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc.
(NASDAQ: RODM) acted as the lead placement agent for the transaction and FT
Global Capital, Inc., acted as co-lead placement agent for the
transaction.
This
press release does not constitute an offer to sell or the solicitation of an
offer to buy, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful. Any offer will be made only by means of a prospectus,
including a prospectus supplement, forming a part of the effective registration
statement. Copies of the prospectus supplement together with the accompanying
prospectus can be obtained at the Securities and Exchange Commission’s website
at http://www.sec.gov.
About
General Steel Holdings, Inc.
General
Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a
diverse portfolio of Chinese steel companies. With 6.3 million metric tons of
aggregate production capacity, its companies serve various industries and
produce a variety of steel products including rebar, hot-rolled carbon and
silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings,
Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia
Autonomous Region and Tianjin municipality. For more information, please visit
www.gshi-steel.com.
Information
Regarding Forward-Looking Statements
This
press release may contain certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations or beliefs about future events and
financial, political and social trends and assumptions it has made based on
information currently available to it. The Company cannot assure that any
expectations, forecasts or assumptions made by management in preparing these
forward-looking statements will prove accurate, or that any projections will be
realized. Actual results could differ materially from those projected in the
forward-looking statements as a result of inaccurate assumptions or a number of
risks and uncertainties. These risks and uncertainties are set forth in the
Company’s filings under the Securities Act of 1933 and the Securities Exchange
Act of 1934 under “Risk Factors” and elsewhere, and include: (a) those risks and
uncertainties related to general economic conditions in China, including
regulatory factors that may affect such economic conditions; (b) whether the
Company is able to manage its planned growth efficiently and operate profitable
operations, including whether its management will be able to identify, hire,
train, retain, motivate and manage required personnel or that management will be
able to successfully manage and exploit existing and potential market
opportunities; (c) whether the Company is able to generate sufficient revenues
or obtain financing to sustain and grow its operations; (d) whether the Company
is able to successfully fulfill our primary requirements for cash and (e) other
risks, including those disclosed in the Company’s Form 10-K, filed with the
SEC. Forward-looking statements contained herein speak only as of the
date of this release. The Company does not undertake any obligation to update or
revise publicly any forward-looking statements, whether to reflect new
information, future events or otherwise.
For
investor and media inquiries, please contact:
In
China:
Jing
Ou-Yang
General
Steel Holdings, Inc.
Tel:
+86-10-5879-7346
Email:
jing.ouyang@gshi-steel.com
Justin
Knapp
Ogilvy
Financial, Beijing
Tel:
+86-10-8520-6556
Email:
gsi@ogilvy.com
In
the United States:
Jessica
Barist Cohen
Ogilvy
Financial, New York
Tel:
+1-646-460-9989
Email:
gsi@ogilvy.com
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