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VANCOUVER, British Columbia, Nov. 25, 2021 (GLOBE NEWSWIRE) -- Hanwei Energy Services Corp. (TSX: HE) (“Hanwei” or the “Company”), announces that it has arranged, as vendor, an arm’s length purchase and sale agreement dated November 24, 2021 (the “Agreement”) with DanQing Tujiao Trading Co., Ltd., as purchaser (the “Purchaser”) for the proposed sale and disposition of Harvest Longwall High Pressure FRP Pipe Co., Ltd. (“Harvest”) to the Purchaser for CND$1,050,000 and the Purchaser’s assumption of all liabilities and obligations of Harvest (the “Proposed Sale Transaction”).
Harvest owns all of Hanwei’s plant and equipment for the production of fiberglass reinforced pipe, which comprises substantially all of the Company’s business and assets. The Agreement also includes the provision of a maximum of CND$215,000 in working capital from Harvest to the Company up to the closing date of the Agreement, the assumption of a debt in the amount of RMB 7,277,027 (or CND$1.455 million) owed by Hanwei to a third party, a waiver and forgiveness of all of the Company’s indebtedness to Harvest estimated to be CND$11.334 million, and an indemnity from the Purchaser to the Company and its representatives for all future liabilities of Harvest, and a general release from Harvest.
The Proposed Sale Transaction is subject to significant conditions to closing, include the approval of the shareholders of the Company by special resolution at its Annual General and Special Meeting to be held on January 12, 2022, and regulatory approvals.
The board of directors of Hanwei will complete the transition of the Company from the fiberglass reinforced pipe business, and expect to maintain shareholder liquidity through listing on an appropriate stock exchange, pending realization of a new business opportunity.
About Hanwei Energy Services Corp.
Hanwei’s principal business operations are in the oil and gas industry as an equipment supplier to the industry (as a manufacturer of high pressure, fiberglass reinforced plastic (FRP) pipe products serving energy customers in the global energy market).
For more information, please contact:
Chief Financial Officer
Neither the TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
FORWARD-LOOKING INFORMATION AND NON-GAAP MEASURES
Certain information in this press release is forward-looking within the meaning of certain securities laws, and is subject to important risks, uncertainties and assumptions a description of which is set out in the risk factors section of the Company’s Annual Information Form dated June 24, 2021 and Management Discussion and Analysis for the year ended March 31, 2021 both of which are filed with Canadian securities regulators and available on SEDAR at www.sedar.com. The forward-looking information in this press release describes the Company’s expectations as of the date of this press release.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE PRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, THE COMPANY DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME, EXCEPT AS REQUIRED BY APPLICABLE SECURITIES LEGISLATION.