CER gets financing deal for manufacturing plant

China Energy Recovery closed a financing transaction and issued a two-year 9.5 percent Unsecured Convertible Promissory Note of $5 million. The note may be converted into common stock at a conversion price fixed at $1.80 per share, to an accredited private investor.

The net proceeds from the financing will be used to start the development of CER's new manufacturing plant.

"We are very pleased to see there are investors who can see our potential growth power, share our vision and believe in our execution capabilities in this challenging period," commented Mr. Qinghuan Wu, Chairman and CEO of China Energy Recovery.

"With this funding, we will soon start the development of our new state-of-the-art manufacturing plant which will be tailor-designed to make large to mega sized energy recovery systems," he said.

"Coupled with our strong engineering capability, we believe the new plant will enhance our unique leadership position in the global energy recovery markets in which both the size and level of sophistication of systems have kept increasing," added Wu.