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Hanway Announces Proposal to Sell Harvest Longwall High Pressure FRP Pipe Co., Ltd., Canadian Business Journal

Vancouver, British Columbia, November 25, 2021 (GLOBE NEWSWIRE) — Hanwei Energy Services Corp. (TSX: HE) (“Hanwei” or “Company”) has announced that it has entered into an independent business-to-business agreement dated November 24, 2021 as a vendor (“Hanwei” or “Company”).agreement”) DanQing Tujiao Trading Co., Ltd. As a purchaser (“buyer”) Harvest Longwall High Pressure FRP Pipe Co., Ltd. (“”harvest”) Acceptance of purchasers of CND $ 1,050,000 and purchasers of all responsibilities and obligations for harvesting (“”Proposed sales transaction“).

Harvest owns all of Hanwei’s plants and equipment for manufacturing fiberglass reinforced pipes, which make up virtually all of our business and assets. The agreement also includes that Harvest will provide us with working capital of up to C $ 215,000 by the end date of the agreement and that Hanway will assume a debt of RMB 7,277,027 (or $ 1.455 billion). The waiver and exemption of all of our obligations to third parties, Harvest, is estimated at C $ 11.334 million, from the purchaser to us and their representatives for all future obligations of Harvest, and from Harvest. General liberation.

The proposed sale transaction is subject to significant conditions to completion, including the approval of our shareholders and the approval of regulatory agencies by a special resolution at the Annual General Meeting of Shareholders and Special Meetings to be held on January 12, 2022. It will be.

Hanway’s board expects to maintain shareholder liquidity by listing on the appropriate stock exchange until the transition from the fiberglass reinforced pipe business is completed and new business opportunities are realized. ..

About Hanway Energy Service Co., Ltd.

Hanway’s main business operations are in the oil and gas industry, as an equipment supplier to the industry (as a manufacturer of high pressure glass fiber reinforced plastic (FRP) pipe products serving energy customers in the global energy market).

For more information, please contact:

Maryma
CFO
604-685-2239
mma@hanweienergy.com

Neither TSX nor its regulatory service provider (the term is defined in TSX policy) is responsible for the validity or accuracy of this release.

Future outlook information and non-GAAP indicators

The specific information in this press release is forward-looking, within the meaning of certain securities laws, and is subject to significant risks, uncertainties, and assumptions. These descriptions can be found in the Risk Factors section of our annual information form dated June 24. Discussion and analysis by management for the years 2021 and the year ended March 31, 2021. Both have been submitted to Canadian securities regulators and are available at SEDAR (www.sedar.com). Information about the future outlook for this press release describes our expectations as of the date of this press release.

The forward-looking information contained in this press release represents our expectations as of the date of this press release and is therefore subject to change after that date. Readers should not overemphasize information about future prospects and should not rely on this information as of any other date. We may choose, but we do not promise to update this information at any particular time, except as required by applicable securities law.


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Hanway Announces Proposal to Sell Harvest Longwall High Pressure FRP Pipe Co., Ltd., Canadian Business Journal

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