TORONTO, ONTARIO--(Marketwired - Jan. 8, 2014) - Mr. Xinduo Yu, founder, director and 20% shareholder of Hanfeng Evergreen Inc. (Hanfeng) today announced that he intends to nominate a new slate of independent directors at the company's upcoming annual general and special meeting of shareholders on February 28, 2014. Mr. Yu also announced that, despite his purported termination as President and Chief Executive Officer of Hanfeng, he and his current management team will continue to lead the Hanfeng effort until the inevitable replacement of the current board members led by the Chairman of the Board, Loudon Owen, at the annual general and special meeting in seven weeks.
In addition to the purported termination of the company's founder and China-based CEO, in an unprecedented open letter published today in The Globe and Mail, Beidahuang Agriculture Company Limited, a leading Chinese state-owned agricultural company and until recently one of Hanfeng's largest customers, cited that it had been "ignored and neglected" by the board of directors of Hanfeng. Beidahuang has effectively ceased any future business with Hanfeng under the leadership of Chairman Loudon Owen and his allies on the board, who collectively own less than 0.5% of the issued and outstanding shares of Hanfeng.
"Despite the Loudon Owen-led board's precipitous and disrespectful behaviour, I fully intend to continue to lead the Hanfeng effort and protect Hanfeng and the interests of shareholders from further deterioration," stated Mr. Yu, who remains a director of the company and one of its largest shareholders. "I look forward to the annual general and special meeting, where I have no doubt that shareholders will remove the existing board and replace them with a new slate of qualified independent candidates. Until then, it will be business as usual at Hanfeng and we will do our utmost to fix the problems we believe have been caused by the current directors, including rectifying relationships with our key sino-stakeholders."
Further, we believe the Hanfeng news release misrepresents the circumstances surrounding the termination of the Arrangement Agreement for the proposed privatization of the company, all of which has been communicated to the Special Committee's counsel.
Further details will be included in a comprehensive circular in advance of the annual general and special meeting.