TORONTO, June 28, 2021 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) (“CF Energy” or the “Company”, together with its subsidiaries, the “Group”), a leading new energy service provider in the People’s Republic of China (the ”PRC” or “China”).
The Company wishes to make reference to the press release of the Company dated July 26, 2019 which announced the decision of the board of directors (the “Board”) of the Company to exercise the Company’s option pursuant to the Loan Discharge Agreement dated May 25, 2017 among the Company, Sanya Changfeng Offshore Natural Gas Supply Co., Ltd. (“Sanya Changfeng”) and Mr. Huajun Lin (“Mr. Lin”) to require the estate of Mr. Lin (the “Estate”) to invest an aggregate amount of RMB 36,000,000 (approximately C$6,861,587) in common shares of the Company (the “Investment”) at a price of C$0.68 (being the 30 day volume weighted average trading price of the common shares of the Company preceding June 28, 2019), as prescribed under the Loan Discharge Agreement per common share representing a premium of approximately 6.3% over the closing price of the common shares of the Company on July 24, 2019.
Notices for the Investment (the “Notices”) were sent to the four beneficiaries of the Estate. Among the four beneficiaries of the Estate, Ann (Siyin) Lin and Siqin Lin had provided written statements to the Company, respectively, that they were in full agreement to honor the Investment. The remaining two beneficiaries of the Estate, namely Mingfei He and Zhipei (Trevor) Lin, however, have not agreed to honor the Investment. On June 2, 2021, Ann (Siyin) Lin sent in her letter to the Company and Sanya Changfeng reiterated her consent to honor the Investment.
Since the issuance of the Notices, the Board and management of the Company have made continuous effort of communication with Mingfei He and Zhipei Lin requesting and persuading them to honor the Investment. However, given the time that has passed for the Estate to subscribe for shares, the Company is left with no alternative but to take legal action to enforce the Loan Discharge Agreement and the Investment. On June 21, 2021, the Company together with Sanya Changfeng filed a contract dispute case (the “Claim”) against the Estate in the Sanya Intermediate People’s Court (the “Court”), Sanya City, Hainan Province, the PRC to enforce the execution of the Loan Discharge Agreement and the Investment.
Subsequent to the filing of the Claim, on June 23, 2021, Siqin Lin sent in her letter to the Company and Sanya Changfeng reiterated her consent to honor the Investment, and on June 24, 2021, the Court issued the subpoena requiring all parties related to the Claim to attend the court hearing scheduled to be held on August 31, 2021 in Sanya City, Hainan Province, the PRC.
About CF Energy Corp. (Previously known as: Changfeng Energy Inc.)
CF Energy Corp. is a Canadian public company currently traded on the Toronto Venture Exchange (“TSX-V”) under the stock symbol “CFY”. It is an integrated energy provider and natural gas distribution company (or natural gas utility) in the PRC. CF Energy strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, CF Energy was recognized as being one of China’s the Top Ten Most Influential Brands in the Natural Gas Industry and in 2019, ranked amongst the 2019 TSX Venture 50 top performers on the TSXV for the 2018 year.
CONTACT INFORMATION
Corporate Investment Relations
Investor.relations@changfengenergy.cn
Charles Wang
Executive Assistant to CEO & Chair of the Board
zhaoyu.wang@changfengenergy.cn
Frederick Wong
Director of the Board
fred.wong@changfengenergy.cn
Mike Liu
VP Capital Market
mike.liu@changfengenergy.cn
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking statements and forward-looking information (collectively, “Forward-Looking Statements”). All statements, other than statements of historical fact, included or incorporated by reference in this document are forward-looking statements —including statements regarding activities, events or developments that the Company expects or anticipates may occur in the future. These forward-looking statements can be identified by the use of forward-looking words such as “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “believe”, “continue”, other similar words and/or the negatives thereof. No assurance is given that the plans, intentions or expectations or assumptions upon which these forward-looking statements are based will prove to be correct and the forward-looking statements included in this news release should not be unduly relied upon. Though management believes that the expectations outlined in such forward-looking statements are reasonable, there can be no assurance that such expectations will materialize. Such-looking statements are not a guarantee of performance and involve known and unknown risks, uncertainties, assumptions, and other factors that may cause the actual results, performance or achievements to deviate materially from the anticipated results, performance or achievements or developments expressed or implied by such forward-looking statements. These factors include, without limitation, significant and continuing adverse changes in general economic conditions or conditions in the financial markets. Readers are cautioned that all forward-looking statements involve risks and uncertainties, including those risks and uncertainties detailed in the Corporation’s filings with applicable Canadian securities regulatory authorities, copies of which are available at www.sedar.com. The Company urges readers to carefully consider these factors. The forward-looking statements included in this news release are made as of the date of this document and the Company disclaims any intention or obligation to update or revise any forward-looking Statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable securities legislation. This news release neither constitutes an offer to sell nor a solicitation of offers to buy any of the securities described herein. Accordingly, undue reliance should not be placed on its contents.
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