Carbon Energy (ASX:CNX, OTCQX:CNXAY) has confirmation remittance of $2 million from its largest shareholder, Kam Lung Investment Development Company Ltd, which will be issued 123,845,128 shares once the funds are cleared.
This will take Kam Lung’s holding to 19.99% and trigger nomination of its representative to Carbon’s board of directors.
The placement shares will be held in voluntary escrow for 12 months from the date of issue.
Carbon also proposes to form a joint venture with Beijing Jinhong Investment Co., Ltd (a Chinese Affiliate of the Hong Kong based Kam Lung) for the purpose of establishing a vertically integrated gas business in China.
The first goal of the joint venture would be the establishment of a demonstration facility.
The joint venture will be formed only on receipt of approval from China’s Ministry of Commerce, which is expected before the end of the first quarter of 2016, as well as shareholder approval.
Kam Lung Investment
The Kam Lung Investment is being made as a placement of 123,845,128 shares priced at $0.016, a 14% premium to the closing price on 25th September 2015.
CNX is currently trading at $0.017.
Kam Lung is a Hong Kong based private investment company and is 100% owned by Zhuang Hai Hui.
