China New Energy inks first deal in North America

AIM-listed engineering and technology solutions provider China New Energy has inked its first deal in North America and raised £200,000 via a share subscription.

The company said it has signed a CAD$3m contract with BioNeutra North America Inc to design, manufacture and install a 5,000 tonne per isomaltooligosaccharide production line extension to BioNeutra's existing facilities.

Canada-based BioNeutra is a manufacturer and supplier of Vitafiber, which is a low calorie and soluble prebiotic fibre for human digestive health.

Chairman Yu said: " In addition to designing and manufacturing the production line, we will also be responsible for onsite installation and training the BioNeutra staff. We therefore see this project as an opportunity to establish a long-standing relationship with BioNeutra and to raise the profile of CNE in the North American market and expand our product portfolio.”

The company also announced that it has issued 13.3m shares at 1.5p each to an unnamed private investor.

The funds raised will provide China New Energy with additional working capital to further its initial work needed in Africa and to assist in developing its opportunities in Europe.

At 1253 GMT, shares were down 7.8% to 1.8440p.