Green Dragon Gas Ltd., the Chinese coal bed methane (“CBM”) business, announces that its Board has decided to pursue a Hong Kong listing and filed its listing application with the Hong Kong Exchange today. Subject to Hong Kong Stock Exchange’s staff review and the approval of the Listing Committee of the Hong Kong Stock Exchange, the state of the equity market and the final decision of the Board and the shareholders, the Company is targeting a listing by the end of the first quarter of 2008. However, there is no assurance that the Hong Kong listing will proceed as scheduled or at all.
In accordance with the Hong Kong Exchange guidelines, shareholder loans made to the Company by the Company’s Chief Executive, Mr Randeep Grewal, amounting to approximately US$20.8 million, were repaid in full shortly before this filing.
The Remuneration Committee proposed and the Board approved and adopted a share option scheme for the Company’s Directors, management and employees (“the Share Option Scheme”). The options, which will vest over a five-year period, represent 10% of the issued and outstanding shares of the Company with a fixed price of $6.50 per share.
Mr. Randeep S. Grewal, Chairman and CEO, comments, “The Company is based in Hong Kong with exclusive business operations in China and thus this filing is a logical progressive step for the Company. We feel it is in the best interests of the Company and its shareholders to list locally and provide an equity platform to fuel the Company’s continued aggressive growth plan.
“The share options issued above the current market price to the core management team and the Directors reflects an alignment with the shareholders’ interest. The Board, Management and the core employees have been the cornerstone of the Company’s exponential growth over the last year and this plan appropriately rewards the dedication and hard work.”