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HONG KONG, Nov 20, 2018 - (ACN Newswire) - Changfeng Energy Inc. (TSXV: CFY) ("Changfeng" or the "Company", together with its subsidiaries, the "Group"), an energy provider in the People's Republic of China (the "PRC"), is pleased to announce that in October 2018, Sanya Changfeng New Energy Investment Co. Limited ("Sanya Changfeng"), a wholly owned subsidiary of the Company, Hunan Changfeng Energy Co. Limited ("Hunan Changfeng"), a 55% indirectly owned subsidiary of the Company, and Sichuan Tianzhiyuan Energy Technology Limited. ("Tianzhiyuan Energy"), an independent Sichuan-based energy company, entered into an agreement (the "Meishan Agreement") to jointly invest, construct and operate an integrated district energy distribution project in the New Economic Development Zone of Meishan City, Sichuan Province, the PRC (the "Meishan New Economic Development Zone") (the "Meishan Project"). In accordance with the Meishan Agreement, the Meishan Project will be operated by Meishan Hengtai Tianzhiyuan Energy Limited (the "Project Company"), with a registered capital of RMB10 million and owned as to 60% by Sanya Changfeng, 20% by Hunan Changfeng and 20% by Tianzhiyuan Energy.
Prior to the entering into of the Meishan Agreement, Tianzhiyuan Energy and the People's Government of Meishan Dongpo District, Sichuan Province, the PRC, entered into a district distributed natural gas combined cooling, heating and power (CCHP) project investment agreement (the "CCHP Investment Agreement") which provided for Tianzhiyuan Energy to invest RMB180 million in the development, investment, construction, and operation of the Meishan Project to provide heat and power to the Meishan New Economic Development Zone. As a result of the Meishan Agreement, the Project Company is expected to assume the CCHP Investment Agreement from Tianzhiyuan Energy pursuant to the CCHP Investment Agreement. In addition, under the Meishan Agreement, Sanya Changfeng has undertaken to (i) finance Tianzhiyuan Energy for its 20% equity contribution (RMB2 million) to the Project Company (the "Equity Financing"); and (ii) in the event that debt financing is required for the Meishan Project but such funds from financial institutions are not yet in place, provide initial debt financing (the "Project Financing") to the Project Company. Both the Equity Financing and Project Financing are subject to interest. Tianzhiyuan Energy is to pledge its shares in the Project Company to Sanya Changfeng as a condition of both the Equity Financing and Project Financing, and Hunan Changfeng is to pledge its shares in the Project Company to Sanya Changfeng as a condition of the Project Financing.
About Changfeng Energy Inc. (Toronto listed symbol: TSXV:CFY)
Changfeng Energy Inc. 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. Changfeng strives to combine leading clean energy technology with natural gas usage to provide sustainable energy to its customer base in the PRC. In 2009, Changfeng was recognized as being one of China's the Top Ten Most Influential Brands in the Natural Gas Industry. For details of Changfeng, please visit: www.changfengenergy.com.
About the Meishan Project
The Meishan Project is in the Meishan New Economic Development Zone, an economic zone situated next to central urban area of Meishan City, Sichuan province, the PRC, with a planned development area of 50.5 square kilometres. The Meishan New Economic Development Zone will be a hub for manufacturers of drugs, supplements, medical equipment, and other medical related supplies. The year-round constant demand of steam necessary to produce drugs makes the Meishan New Economic Development Zone an ideal platform for integrated district energy distribution. The Meishan Project is planned to be developed in two or three phases.
Topic: Press release summary
Source: Changfeng Energy Inc.
Sectors: Daily Finance, Energy, Alternatives, Daily News
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From the Asia Corporate News Network
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