Hanfeng Evergreen Inc. Announces Sale of Its Jiangsu Subsidiary
Marketwired
TORONTO, ONTARIO--(Marketwired - May 27, 2014) - Hanfeng Evergreen Inc. (HF.TO) ("Hanfeng" or the "Company") announced today that it has agreed to sell its wholly-owned subsidiary Hanfeng Slow-Release Fertilizer (Jiangsu) Co., Ltd. ("Jiangsu") to Tianjin Bohai Dadi Hi-Tech Co., Ltd. (the "Purchaser"), an arm's length third party, for cash consideration of RMB 30 million (approximately Cdn$5.2 million). In accordance with the terms of the definitive agreement governing the sale, RMB 9 million (approximately Cdn. $1.6 million) will be paid by the Purchaser within 5 days and the balance (RMB 21 million or approximately Cdn. $3.6 million) will be paid upon the transfer of the shares having been properly registered with the applicable regulatory authorities and becoming effective in accordance with Chinese law, or, in any event, within sixty days. The transaction is expected to close by the end of July 2014. All expenses and costs in connection with the transaction, including charges incurred in connection with filings and registrations at relevant authorities, will be borne by the Purchaser.
The Company's Jiangsu facility had been serving as the R&D base and training center for the Company's Indonesia Joint Venture (the "Indonesian Joint Venture") which was sold in April 2014. Given the sale of the Company's interest in the Indonesia Joint Venture, the production level at the Jiangsu facility over the past few years and the liabilities that were associated with the Jiangsu subsidiary, the Company decided that it was in its best interests to sell Jiangsu for cash.
The common shares of the Company remain subject to cease trade orders issued by Canadian securities regulatory authorities and are scheduled to be delisted from the Toronto Stock Exchange effective at the close of market on June 9, 2014.
Forward-Looking Statements
This news release contains forward-looking statements. These forward-looking statements relate to future events, performance and results, and reflect management's expectations or beliefs regarding future events, including business and economic conditions and the Company's growth, results of operations, performance and business prospects and opportunities. Forward-looking information is typically identified by words such as "anticipate", "believe", "foresee", "expect", "estimate", "forecast", "goal", "intend", "plan", "seek", "strive", "will", "may", "should", "could" and similar expressions. Specific forward-looking information in this news release includes, but is not limited to, statements with respect to timing of payment, registrations with the applicable regulatory authorities and delisting from the Toronto Stock Exchange.
The forward-looking statements contained herein entail various risks and uncertainties. A number of factors could cause actual events, performance or results to vary from those reflected in these forward looking statements. Risks and uncertainties about the Company's business are more fully discussed in the Company's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available under the Company's profile on www.sedar.com. Additional important factors that could cause actual results to differ materially include, but are not limited to, the ability of the Company to preserve or monetize its working capital, the ability of the Company to attract and retain customers, the ability of the Company to appoint directors and representatives of its subsidiaries in China and elsewhere, delays in financial reporting, the ability of the Company to raise capital if and when required, foreign exchange fluctuations and controls, general economic conditions, market and business conditions, regulatory developments, changes in government policy, employee actions (including strikes or work stoppages), environmental factors including weather conditions and the impacts from regional flooding and/or drought conditions, and litigation. In evaluating forward-looking information, readers should specifically consider the factors that may cause actual results to vary. Forward-looking statements are not guarantees of future performance.
In light of the significant uncertainties inherent in the forward-looking statements included herein, any such forward-looking statements should not be regarded as representations by the Company that its respective objectives or plans will be achieved. Investors are cautioned not to place undue reliance on any forward-looking statements contained herein. Forward-looking statements are based on, and included for the purpose of providing information about, the Company's current expectations, beliefs and plans relating to the future which are based on the Company's perception of historical trends, current conditions and expected future developments as well as other factors it believes are appropriate in the circumstances including, but not limited to, assumptions that are stated or inherent in such forward looking statements, the assumptions referred to above, and assumptions regarding revenue growth and operating efficiencies, the ability of the Company to restore relations with its former principal customer and address regulatory concerns, the ability of the Purchaser to make timely payments and completion of all registrations. Readers are cautioned that such information may not be appropriate for other purposes. In addition, these forward-looking statements relate to the date on which they are made. While the Company anticipates that subsequent events and developments may cause the Company's views to change, the Company expressly disclaims any intention or obligation to update or revise any forward-looking statements or the foregoing list of factors, whether as a result of new information, future events or otherwise, except to the extent required by law.
About Hanfeng Evergreen Inc.
Hanfeng is a leading producer and supplier of value-added fertilizer solutions in emerging markets. It is the largest producer of slow and controlled release fertilizer in one of world's most significant agricultural markets, the People's Republic of China. Hanfeng is headquartered in Toronto, Ontario.
