TORONTO, ONTARIO — (Marketwired) — 08/28/13 — Hanfeng Evergreen Inc. (TSX: HF) (“Hanfeng” or the “Corporation”) announced that it has been informed by Xinduo Yu, the Chief Executive Officer of Hanfeng, and 8310831 Canada Inc., a corporation wholly-owned by Xinduo Yu (collectively, the “Purchaser”) that the previously announced debt financing committed by Nongken Longgang Agriculture Investment Co., Limited in favour of the Purchaser for the purpose of financing a portion of the cash consideration payable under the proposed privatization of Hanfeng by the Purchaser has expired and is no longer available to the Purchaser at this time.
Hanfeng also announced that it is in the ongoing process of exploring strategic alternatives to the proposed privatization by the Purchaser pursuant to the “go shop” rights that were previously negotiated by the special committee of independent directors (the “Special Committee”) of Hanfeng at the time of the previously announced second extension of the outside date under the arrangement agreement between Hanfeng and the Purchaser. In connection with that process, the Chairman of the Special Committee, on behalf of Hanfeng, has engaged in discussions and negotiations with third parties, which has resulted in an expression of interest in a possible strategic acquisition transaction with Hanfeng. While such discussions and negotiations are ongoing, there is no assurance that an alternative transaction can or will surface or be completed. Hanfeng does not intend to make further comment unless or until there is an agreement or material information to announce.
Forward-Looking Statements
This press release contains forward-looking statements based on current expectations, including but not limited to the Corporation–s plans, objectives and expectations, the Purchaser–s plans, objectives and expectations with respect to the Corporation, and statements in respect of the completion of, and completion risk associated with, the proposed privatization transaction by the Purchaser and the exploration by the Special Committee of the Board of Directors of the Corporation of strategic alternatives to the proposed privatization transaction. 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 actual closing of the proposed privatization transaction; the timing for completion of the proposed privatization transaction; the satisfaction of, or the failure to satisfy, as applicable, one or more conditions to the completion of the proposed privatization transaction; further delays relating to the completion of the proposed privatization transaction; the inability to consummate the proposed privatization transaction; and the actual surfacing of an alternative transaction. Readers are cautioned that the foregoing list of important factors and assumptions is not exhaustive. 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 traded on the Toronto Stock Exchange under the symbol HF.
Contacts:
Hanfeng Evergreen Inc.
Loudon Owen
Chairman of the Board of Directors
(416) 368-8588
Spinnaker Capital Markets Inc.
Kevin O–Connor
Investor Relations
(416) 962-3300