FUQING CITY, CHINA--(Marketwired - May 8, 2014) - In response to questions from investors regarding the complaint filed by the SEC on Monday against five individuals residing in the U.S. and Canada, for alleged illegal trading in GPRC shares, Mr. Chen Min, Chairman and CEO of Guanwei Recycling Corp. (NASDAQ: GPRC), stated:
"We firmly believe that any wrongdoings that have harmed or possibly could bring harm to our shareholders should be pursued by the Securities and Exchange Commission and fully support all of their efforts in this regard. We ourselves have not been accused of anything. Our focus always has been and will continue to be on achieving the long term growth potential of our business in the most environmentally sound manner possible, and protecting the best interests of our shareholders."
The Company added it had become aware this morning of a press release issued by a California law firm announcing what it termed "an investigation" of "potential claims" against Guanwei. The Company said it has been advised by its attorneys that this is nothing more than a blatant blackmail attempt by a firm notorious for this type of activity that is seeking to capitalize on the publicity surrounding the SEC's actions. Mr. Chen Min stated, "The allegations put forth by the firm have no validity whatsoever and we will take whatever steps are required to not fall prey to their scheme. We fully anticipate this soon will become a non-event."
Description of Guanwei Recycling Corp.
Adhering to the highest "green" standards, Guanwei Recycling Corp. (the "Company") has generated rapid growth producing recycled low density polyethylene (LDPE) from plastic waste procured mostly in Europe. The Company sells the recycled LDPE to more than 300 customers (including over 150 active recurring customers) in more than ten different industries in China. The Company is licensed by Chinese authorities and also has been issued a Compliance Certificate by Umweltagentur Erftstadt, which issues certificates of approval for certain plastics manufacturers that meet Germany's strict environmental standards. This enables the Company to procure high quality plastic waste directly from Germany and other European countries with no middlemen, and permits highly economic production of the highest grades of LDPE. Additional information regarding Guanwei Recycling Corp. is available at www.guanweirecycling.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause our actual results in future periods to differ materially from forecasted results. These risks and uncertainties include, among other things, product demand, market competition, and risks inherent in our operations. These and other risks are described in our filings with the U.S. Securities and Exchange Commission.