SovGEM Limited

SovGEM Limited

April 23, 2007 02:09 ET

SovGEM Limited: Investments

LONDON, UNITED KINGDOM--(CCNMatthews - April 23, 2007) - SovGEM (AIM:SOV), the emerging market finance house, is pleased to announce the following new investments since November 2006.

Petrocom Energy

SovGEM has made two investments in Petrocom totalling $500,000, the first for $250,000 on 16 August 2006 and the second $250,000 on 5 February 2007.

Petrocom is an unquoted Cayman Islands company operating and developing a coal blending business in mainland China. Petrocom has an exclusive license for proprietary Dutch coal beneficiation technology to blend coal to US, European and new PRC environmental standards and to improve combustion efficiencies in coal-fired power stations. Petrocom has begun construction of coal blending facilities in Hubei Province.

HaiKe Energy

Based in Dongying in Shangdong, HaiKe is a Chinese company manufacturing petrochemicals, speciality chemicals and fine biochemicals. HaiKe is listed on the AIM market.

On 7 February 2007 SovGEM bought 358,399 shares at $1.57 (c.81.7p). The shares closed on 19 April 2007 at Pounds Sterling 1.27.5


SNEN is a profitable natural gas distributor and equipment manufacturer based in Qingdao in Shangdong. SNEN is presently quoted on the US OTC Bulletin Board.

On 22 February 2007 SovGEM purchased 400,000 shares at $1.71. At the close of business 19 April 2007 the mid market price of SNEN was $2.06.

Software Radio Technologies (SRT)

SRT is a UK company, listed on AIM, involved in the design and licensing of TETRA secure digital handsets. A particular focus of SRT is the homeland security markets in countries such as China and Taiwan.

On 26 March 2007 SovGEM entered into an agreement to purchase 476,190 shares at 42p. At the close of business on 19 April 2007 SRT's mid price was 44.5p.

Follow-on investment - Cadogan Petroleum

Cadogan is an unquoted UK company operating gas and oil exploration and production in the CIS.

In April 2006 SovGEM invested Pounds Sterling 100,000 in Cadogan. As a result of a ratchet mechanism that was in place if Cadogan had not floated in 2006 SovGEM received further shares. As a result SovGEM held 483,333 shares at an equivalent price of 20.7p.In August 2006 Cadogan raised Pounds Sterling 15.2m at a valuation of 27.3p per share. In January 2007 Cadogan raised a further $27.3m in a private placement at 27.3p.

On 22 February 2007 SovGEM purchased 732,600 shares at 27.3p. SovGEM, therefore, now holds 1,215,933 shares.

Cadogan intends to list later in 2007.

Net Asset Value

The Company is able to update the Directors' estimate of NAV at 30.67p as of close of business on 19 April 2006, representing an increase of 9.94 % from the December 2006 year-end NAV of 27.91p

Commenting on these investments SovGEM Chief Executive Hugh de Lusignan said: "We are delighted to have made these investments; they reinforce our ongoing commitment to invest in companies servicing the Chinese domestic market. The Chinese energy sector continues to perform strongly and we believe our positions in these companies are well placed to take advantage of it. Likewise, we believe that the opportunities that SRT has in the Chinese homeland security market should deliver considerable shareholder value.

For further information:

SovGEM Limited
Hugh de Lusignan, Chief Executive Officer Tel: +44 (0) 20 7389 0655

Media enquiries:

Charlie Jack/Laura Riascos Tel: +44 (0) 20 7398 7700

Notes to Editors:

SovGEM Limited is an emerging market finance house incorporated in Jersey. Its geographic investment focus includes China and other emerging markets. SovGEM joined AIM in November 2004 (AIM:SOV). The Company has a deliberate policy of investing in growth companies, virtually all of which are also highly profitable. SovGEM has an extensive network of professional advisors and associates giving the Company access to the small cap Chinese and other emerging markets. The Company's aim is to realise profits by investing in these companies as they undertake a major step change either through listing, evolving to a more senior financial market or undertaking an attractive rights issue. These investments may comprise straight equity or debt instruments with an equity conversion scheme.

Further information can be found at

Contact Information