China North East Petroleum (NEP) Selling 4M Shares At A Price of $4.60 Per Share

September 16, 2009 9:29 AM EDT

China North East Petroleum Holdings (NYSE: NEP) has entered into definitive agreements to sell 4 million shares of its common stock at a price per share of $4.60 pursuant to a registered direct offering to several select institutional investors, representing gross proceeds of approximately $18.4 million.

Investors will also receive warrants to purchase 800,000 shares of China North East Petroleum Holding Ltd.'s common stock. The warrants have an exercise price of $6.00 per share and are exercisable beginning six months after the closing of the transaction and before the two and a half year anniversary of such initial issuance date. The closing of the offering is expected to take place on or about Friday, September 18th, 2009, subject to the satisfaction of customary closing conditions. China North East Petroleum Holdings Ltd. plans to use the net proceeds from the offering to fund its future business expansion plan, and for general working capital purposes.

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