General Steel Holdings, Inc. Announces Closing of $25.0 Million Securities Offering

 

General Steel Holdings, Inc. (“General Steel” or “the Company”) (NYSE: GSI), one of China’s leading non-state-owned producers of steel products and aggregators of domestic steel companies,

today announced that it has completed its securities offering with institutional investors selling 5,555,556 shares of the Company’s common stock (“Common Stock”) and warrants to purchase 2,777,778 shares of Common Stock for aggregate gross proceeds of $25.0 million. The shares and warrants were sold pursuant to a Form S-3 shelf registration statement that was filed by General Steel with the Securities and Exchange Commission (the “SEC”) and declared effective by the SEC on October 22, 2009. General Steel intends to use the net proceeds from the offering for general corporate purposes which may include working capital, capital expenditures, acquisitions of new businesses and investments.

The Company sold the securities in “units” at a price of $4.50 per unit. Each unit consists of one share of Common Stock and a two and one half year warrant to purchase 0.50 of an additional share of Common Stock. The warrants have an exercise price of $5.00 per share and are exercisable commencing six months and one day after closing.

Certain anti-dilution adjustment provisions contained in the Company’s common stock purchase warrants originally issued on December 13, 2007 (“December 2007 Warrants”) may have been triggered by the Company’s sale of the units. Rather than giving full effect to the anti-dilution provisions, the Company and the holders of the December 2007 Warrants entered into an agreement whereby the aggregate number of shares of common stock issuable upon exercise of the December 2007 Warrants is increased from 1,154,958 shares to 3,900,871 shares, and the exercise price of the December 2007 Warrants was reduced from $13.51 per share to $5.00 per share.

Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc. (Nasdaq: RODM) acted as the lead placement agent for the transaction and FT Global Capital, Inc., acted as co-lead placement agent for the transaction.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offer will be made only by means of a prospectus, including a prospectus supplement, forming a part of the effective registration statement. Copies of the prospectus supplement together with the accompanying prospectus can be obtained at the Securities and Exchange Commission’s website at http://www.sec.gov.

About General Steel Holdings, Inc.

General Steel Holdings, Inc., (NYSE: GSI), headquartered in Beijing, China, operates a diverse portfolio of Chinese steel companies. With 6.3 million metric tons of aggregate production capacity, its companies serve various industries and produce a variety of steel products including rebar, hot-rolled carbon and silicon sheet, high-speed wire and spiral-weld pipe. General Steel Holdings, Inc. has steel operations in Shaanxi and Guangdong provinces, Inner Mongolia Autonomous Region and Tianjin municipality. For more information, please visit http://www.gshi-steel.com .

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