DGAP-News

SinoCoking Announces Entry Into Agreement for $14.3 Million Registered Direct Offering of Common Shares and Warrants

DGAP-News: SinoCoking Coal and Coke Chemical Industries. Inc.
SinoCoking Announces Entry Into Agreement for $14.3 Million Registered
Direct Offering of Common Shares and Warrants

18.09.2014 / 19:00

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PINGDINGSHAN, China, 2014-09-18 19:01 CEST (GLOBE NEWSWIRE) --
SinoCoking Coal and Coke Chemical Industries, Inc. (Nasdaq:SCOK) ('SinoCoking'
or the 'Company'), a vertically-integrated coal and coke processor, today
announced that it entered into a securities purchase agreement (the 'Securities
Purchase Agreement') with two institutional investors in connection with an
offering (the 'Offering') pursuant to which the Company agreed to sell to
investors 2,818,845 shares to be issued on the initial closing of the Offering
(the 'Initial Offering') at a price of $5.10 per common share. The Initial
Offering includes Series A warrants to purchase an aggregate of 1,409,423
shares of common stock and Series B warrants, which are not exercisable for the
first six months, may become exercisable only to the extent the Company does
not have an effective registration statement available for shares underlying
such warrants, and, in any event, expire after certain registration conditions
are satisfied, to purchase an aggregate of 1,644,737 shares of common stock.
The Company expects the Initial Offering of approximately $14.3 million in
gross proceeds will close on or before September 23, 2014.

Under the Purchase Agreement, the investors will also have an option to
purchase up to $10 million of additional shares and warrants at a price of
$6.08 per unit of securities for a period beginning six months and one day from
the date the Initial Offering closes and ending ten months from the date the
Initial Offering closes (subject to extension in certain circumstances as
described in the Purchase Agreement) (the 'Option Period').

The Series A warrants will be exercisable immediately as of the date of
issuance at an exercise price of $6.38 per common share and expire four years
from the date of issuance. The Series C warrants will be exercisable
immediately as of the date of issuance at an exercise price of $6.08 per common
share and expire four years from the date of issuance.

The Series B warrants will be exercisable at an exercise price of $6.08 per
share at any time during the Offering Period only if the Company's shelf
registration statement on Form S-3 (File No. 333-178325) as filed with the
Securities and Exchange Commission is not effective or is not otherwise
available for the issuance of the shares issuable during the Option Period or