China XD Plastics has entered into a private placement agreement with several institutional and individual investors to sell an aggregate 15,188 shares of convertible preferred stock. The company said that the resulting gross proceeds would reach approximately US$15.2m.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The company expects to use the proceeds to expand production capacity.
China XD, which is China’s largest developer, manufacturer, and distributor of modified plastics primarily for use in automotive applications in China, said the the preferred stock is convertible into the company’s common stock at a price of $4.60 per share and will accrue cumulative dividends at the rate of 6% per annum until maturity on 1 December 2012.
“We are excited to announce our financing, which demonstrates the confidence investors have in the company and our prospects for the future,” said Jie Han, chairman and CEO of China XD Plastics. “We plan to use the proceeds mainly to fund our production capacity expansion programme.”
