L&L Enters Into $5 million Equity Transaction with Institutional Investor to Execute Wholesale Growth
SEATTLE, Aug. 15, 2013 /PRNewswire/ -- L & L Energy, Inc. (NASDAQ: "LLEN") ("L&L" or the "Company"), a U.S.-based company with a track record of profitable coal operations in China, today announced that it has settled $5,000,000 in debt and trade payables, removing these obligations from its balance sheet in exchange for the issuance of shares of its common stock and freeing up cash flow for the Company to execute its wholesale growth with Datang International Power Group ("Datang").
On May 15, 2013, the Company signed an updated contract to provide one million tons of coal to a member of Datang, one of the five primary power generators in China. Since then, the Company's strategic focus has been to execute the Datang contract, aside from pursuing other strategic initiatives.
The Company, with the free up of cash flow, intends to accelerate the execution of the Datang relationship and further build out its distribution network in South China. L&L currently has three rail loading and blending facilities strategically located to source coal from a broad area. L&L's senior management is also exploring with Datang the leverage of its US network to further reduce coal pollutants in the power generation process.
Mohan Datwani, Independent Board Member of L&L, commented, "Being from Asia, Datang is a brand name. The transaction with Ironridge Global IV, Ltd., an overseas passive investor, came at an opportune time as historically low August coal prices create a favorable opportunity for us to secure large quantities of coal. Further, we are in process of completing due diligence on a large mining operation with over one million tons of annual capacity in North China. The ability to free up working capital for acquisitions as well as capital expenditures for the expansion of our current operations will be important as we progress through our growth plans."
L&L Energy Inc.
SOURCE L & L Energy, Inc.