Hanfeng Evergreen Inc.
TSX : HF

Hanfeng Evergreen Inc.

July 23, 2014 16:35 ET

Hanfeng Evergreen Inc. Announces Appointment of Interim Chief Financial Officer and Provides Update to Shareholders

TORONTO, ONTARIO--(Marketwired - July 23, 2014) - Hanfeng Evergreen Inc. (TSX:HF) ("Hanfeng" or the "Company") announced today that Wendy Xue has resigned as interim Chief Financial Officer of the Company. Kevin Zhang has been appointed as interim Chief Financial Officer of the Company effective immediately.

Mr. Zhang is a Certified General Accountant, a member of the Association of Chartered Accountants (ACCA, U.K.) and a member of the Chinese Institute of Certified Public Accountants. Mr. Zhang was previously the Chief Financial Officer of Changfeng Energy Inc. from May 2010 to April 2013 and the Chief Financial Officer of McVicar Industries Inc. from August 2008 to April 2010. Mr. Zhang has been acting as a consultant to the Company since May 2014 and was previously employed by the Company as a Senior Accountant.

Operational Update

Since the last operational update provided by the Company, as announced on May 27, 2014 the Company has agreed to sell its wholly-owned subsidiary Hanfeng Slow-Release Fertilizer (Jiangsu) Co., Ltd. for cash consideration of RMB 30 million (approximately Cdn$5.2 million) with the final payment expected to be received by the Company by the end of July 2014. In addition, limited repairs continue to be made at the Company's Heilongjiang (HLJ) plant and there has been no production at the HLJ plant as a result of the summer season and a lack of short-term prospects for customer orders.

The Company continues to evaluate alternatives available to it with respect to its business and operations.

Continuous Disclosure and Securities Filings

The Company is continuing its efforts to retain an auditor but, to date, has not been able to identify an auditor that has the desire to take the assignment [and views the potential of finding a suitable auditor in the near term as unlikely]. As a result, the Company does not believe that it will be able to file its outstanding financial statements and accompanying management discussion and analysis or any future financial statements and accompanying management discussion and analysis in the near future and does not intend to do so until the engagement of, and review by, a new auditor.

The common shares of the Company remain subject to cease trade orders issued by Canadian securities regulatory authorities and were 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.

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.

Contact Information

  • Hanfeng Evergreen Inc.
    Jonathan Pollack
    Lead Director
    416-368-8588