TORONTO, ONTARIO--(Marketwired - Feb. 27, 2014) - Hanfeng Evergreen Inc. (TSX:HF) ("Hanfeng" or the "Corporation") announced today that KPMG LLP (the "Former Auditor") has notified the Corporation that it has resigned as the auditor of the Corporation effective February 26, 2014, without providing a reason for its resignation. Hanfeng has commenced a search for a replacement auditor. Hanfeng intends to prepare and file a change of auditor notice in accordance with the requirements and timing of National Instrument 51-102 ("NI-51-102"). Such notice will provide additional information with respect to the resignation of the Former Auditor and will be available under the Corporation's profile on SEDAR at www.sedar.com in the form of the reporting package required to be filed by the Corporation pursuant to NI -51-102.
Update on normalization and regularization of the business
In light of the events of the past several months, Hanfeng's board of directors has formed a committee of the whole board of directors that is charged with regularizing and normalizing the business, operations and reporting obligations of the Corporation in Canada and China. Over the coming weeks and months the committee will be focused on the process of restoring relations with Hanfeng's key customers and suppliers and addressing the current regulatory issues facing the Corporation.
As part of this process, the Corporation is pleased report that its principal customer, Beidahuang Agricultural Company Limited, has written to the Corporation responding positively to the recent board and management changes and that it looks forward to restoring its past commercial relationship.
The Corporation cautions investors that the process of regularization and normalization will be a long term endeavour and it may take several months before benefits, if any, are realized by the Corporation.
This news release contains forward-looking statements based on current expectations, including but not limited to the Corporation's plans, objectives and expectations and the exploration by the Corporation of strategic alternatives. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Risks and uncertainties about the Corporation's business are more fully discussed in the Corporation's disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada. Additional important factors that could cause actual results to differ materially include, but are not limited to: the ability of the Corporation to preserve or monetize its working capital; the effective ability of the Corporation to appoint directors and representatives of its subsidiaries in China and elsewhere; delays in financial reporting; and the implementation of any alternative or financing transaction on acceptable terms. 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 Corporation 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 provided for the purpose of providing information about the Corporation's current expectations and plans relating to the future. 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. The Corporation 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 two of world's most significant agricultural markets: the People's Republic of China and the Republic of Indonesia. Hanfeng is headquartered in Toronto, Ontario and its shares are listed on the Toronto Stock Exchange under the symbol HF.