FOR: CHANGFENG ENERGY INC.
TSX VENTURE SYMBOL: CFY
Date issue: June 22, 2017
Time in: 3:58 PM e
Attention:
TORONTO, ONTARIO–(Marketwired – June 22, 2017) – Changfeng Energy Inc. (TSX
VENTURE:CFY) (“Changfeng” or the “Corporation”) announced today that both
Institutional Shareholder Services Inc. (“ISS”) and Glass Lewis & Co., LLC
(“Glass Lewis”), two leading independent proxy research and advisory firms,
have published reports recommending that Changfeng shareholders vote FOR a
resolution (the “Loan Discharge Resolution”) to approve a Loan Discharge
Agreement pursuant to which, among other things, Changfeng will repay
indebtedness owed to a related party for an aggregate amount of Chinese RMB
36,000,000. Shareholders are being asked to vote on the Loan Discharge
Resolution at Changfeng’s upcoming annual and special meeting of shareholders
scheduled for Friday, June 30, 2017.
In making its recommendation, ISS noted the following in its report:
/T/
— “Based on the loan valuation prepared by (Valuation Support Partners
Limited), the fair market value of the loan is estimated to be between
36,870,000 and 38,830,000 RMB as at December 31, 2016. Therefore,
repayment amount of the loan is reasonable. Meanwhile, as the company is
determined to use available funds to repay the loan, there won’t be any
dilution effects to shareholders. And considering company’s current
financial positions, it has sufficient funds to support the repayment
and discharge.”
— “In light of the reasonable terms associated with the related-party
loan, company’s sufficient liquidity to repay the loan and the
requirement of HKSE listing, vote FOR (…) the Loan Discharge
Resolution.”
/T/
Glass Lewis also concluded that the Loan Discharge Agreement is in the best
interests of Changfeng’s shareholders, stating that “management and the board
are in the best position to make decisions regarding the Company’s finances….
(…) We understand that in order for the Company to list on the HKSE, these
requirements must be met. We are therefore inclined to support the terms of the
proposal.”
Changfeng encourages all of its shareholders to read the Management Proxy
Circular dated June 1, 2017 (the “Circular”) for a detailed description of the
Loan Discharge Agreement and proposed transaction. The Circular was mailed to
shareholders of record as at May 30, 2017 and is available on SEDAR at
www.sedar.com.
The board of directors of Changfeng, after taking into account, among other
things, the unanimous recommendation of its special committee and after
receiving legal and financial advice, has determined that the Loan Discharge
Agreement is in the best interests of Changfeng and, accordingly, unanimously
recommends that Changfeng shareholders vote FOR the Loan Discharge Resolution.
How to Vote
Changfeng shareholders are urged to vote before the proxy cut-off time of 10:00
a.m. (Toronto time) on Wednesday, June 28, 2017 using the methods below.
Registered shareholders
Shareholders who have physical certificates representing their shares may vote
by telephone, fax, mail or via the Internet.
To vote by telephone, call 1-866-732-8683 from a touch tone phone. When
prompted, enter your Control Number listed on the proxy and follow the voting
instructions. To vote via the Internet, go to www.investorvote.com and enter
your Control Number listed on the proxy and follow the voting instructions on
the screen. If you vote by telephone or via the Internet, do not complete or
return the form of proxy.
Non-registered shareholders
Shareholders who hold their shares through a broker or other intermediary may
vote by telephone, mail or via the Internet.
To vote by telephone, call 1-866-732-8683 from a touch tone phone. When
prompted, enter your Control Number listed on the proxy and follow the voting
instructions. To vote via the Internet, go to www.investorvote.com and enter
your Control Number listed on the proxy and follow the voting instructions on
the screen. If you vote by telephone or via the Internet, do not complete or
return the form of proxy.
About Changfeng Energy Inc.
Changfeng Energy Inc. is a natural gas service provider with operations located
throughout the People’s Republic of China. The Corporation services industrial,
commercial and residential customers, providing them with natural gas for
heating purposes and fuel for transportation. The Corporation has developed a
significant natural gas pipeline network as well as urban gas delivery
networks, stations, substations and gas pressure regulating stations in Sanya
City & Haitang Bay. Through its network of pipelines, the Corporation provides
safe and reliable delivery of natural gas to both homes and businesses. The
Corporation is headquartered in Toronto, Ontario and its shares trade on the
Toronto Venture Exchange under the trading symbol “CFY”. For more information,
please visit the Corporation’s website at www.changfengenergy.com.
Forward-Looking Statements
Certain statements contained in this document 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 Corporation 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” or “continue” or similar words or the negative thereof. No assurance
can be given that the plans, intentions or expectations or assumptions upon
which these Forward-Looking Statements are based will prove to be correct and
such Forward-Looking Statements included in the document should not be unduly
relied upon. Forward-Looking Statements in this document include the repayment
of indebtedness using available funds pursuant to the Loan Discharge Agreement
and the intention of the Corporation to pursue a listing on the HKSE.
Although management believes that the expectations represented in such
Forward-Looking Statements are reasonable, there can be no assurance that such
expectations will prove to be correct. Such Forward-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 differ materially from the anticipated results, performance or
achievements or developments expressed or implied by such Forward-Looking
Statements. These factors include, without limitation, no significant and
continuing adverse changes in general economic conditions or conditions in the
financial markets and no significant and continuing adverse changes in
financial markets. Shareholders 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 Corporation urges shareholders to carefully consider those
factors.
The Forward-Looking Statements included in this document are made as of the
date of this document and the Corporation 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 does not constitute an
offer to sell or solicitation of an offer to buy any of the securities
described herein and accordingly undue reliance should not be put on such.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSXV) accepts responsibility for the adequacy
or accuracy of this release.
– END RELEASE – 22/06/2017
For further information:
Mr. Yan Zhao CPA, CA
Chief Financial Officer
647.313.0066
yan.zhao@changfengenergy.cn
OR
Ms Ann S. Lin
VP, Corporate Development and Corporate Secretary
647.313.0066
Siyin.lin@changfengenergy.cn
COMPANY:
FOR: CHANGFENG ENERGY INC.
TSX VENTURE SYMBOL: CFY
INDUSTRY: Energy and Utilities – Oil and Gas
RELEASE ID: 20170622CC0075
Press Release from Marketwired 1-866-736-3779
All press releases are written by the client and have NO affiliation with the news copy written by The Canadian Press. Any questions that arise due to the content or information provided in the press release should be directed to the company/organization
issuing the release, not to The Canadian Press.
CDN NEWS | 
US NEWS 
COMMENTARY: Activists Suddenly Care About LNG Investors