China Energy Recovery's new Shanghai production facility will get a $5 million funding for development and construction.
Two investors provided an aggregate of $4 million under separate loans of $2 million, each of which matures in January 2013 and bears interest at an annual rate of 15.1 percent.
An additional $1 million was provided through Haide Engineering Hong Kong Ltd., a company that CER's Chairman and CEO, Qinghuan Wu controls. This is an unsecured, interest-only loan bearing an annual interest rate of 9.5 percent and matures in January 2012.
With this transaction, CER has raised approximately $10 million in loans during the last six months toward the design and construction of its new production facility, which is scheduled to be completed this year. This facility will provide CER with more efficient production, increase its overall production capacity and position the company to continue to extend its operations in building and installing cost efficient, high-performance waste heat recovery systems in China and other markets.
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