- Hanwei Energy Services Corp. (HE) has arranged a purchase and sale agreement for the sale of Harvest Longwall High Pressure FRP Pipe Co., Ltd.
- DanQing Tujiao Trading Co., Ltd. will pay C$1.05 million and assume all liabilities and obligations of Harvest
- The agreement also includes the assumption of debt owed by Hanwei to a third party, a waiver of all of the company’s indebtedness to Harvest and an indemnity from DanQing to Hanwei and its representatives for all future liabilities of Harvest
- Hanwei Energy Services Corp. (HE) is unchanged trading at $0.015 per share as of 1:06 p.m. EST
Hanwei Energy Services (HE) has arranged for the sale of Harvest Longwall High Pressure FRP Pipe Co., Ltd.
The company will be sold to DanQuing Tujiao Trading Co. for $1.05 million along with the purchaser’s assumption of all liabilities and obligations of Harvest.
Harvest owns all Hanwei’s plant and equipment to produce fibreglass-reinforced pipe, which comprises substantially all of its business and assets.
The agreement also includes the provision of a maximum of $215,000 in working capital from Harvest to Hanwei up to the closing date of the agreement, the assumption of $1.455 million owed by Hanwei to a third party, a waiver and forgiveness of all of the company’s indebtedness to Harvest estimated to be $11.334 million and an indemnity from the purchaser to the company and its representatives for all future liabilities of Harvest.
The proposed sale is subject to the approval of the Hanwei shareholders.
The Hanwei board of directors will complete the transition of the company from the fibreglass-reinforced pipe business and work to maintain shareholder liquidity through listing on an appropriate stock exchange, pending the realization of a new business opportunity.
Hanwei’s principal business operations are in the oil and gas industry as an equipment supplier.
Harvest Longwell High Pressure FRP Pipe Co. is a manufacturer of high-pressure, fibreglass-reinforced plastic pipe products serving energy customers in the global energy market.
Hanwei Energy Services Corp. (HE) is unchanged trading at $0.015 per share as of 1:06 p.m. EST.