LINYI, China, Sept. 9, 2016 /PRNewswire/ - American Lorain
Corporation (NYSE MKT: ALN) ("ALN") today announced that it is in
discussions with Shengrong Environmental Protection Holding Company
Limited ("Shengrong"), the indirect parent company of Hubei
Shengrong Environmental Protection Energy-Saving and Technology Co.
Ltd. ("Hubei Shengrong"), a registered company in China, regarding a potential transaction.
Hubei Shengrong is a high-tech company engaged in the development,
manufacturing and sales of environmental protection equipment with
a focus on recycling industrial solid waste and mining tailings.
The final terms of the potential transaction are subject to ongoing
negotiations between the parties.
Mr. Chen commented, "We are
pleased to be in discussions with Shengrong, as this potential
transaction would boost the company's positioning in the growing
environmental protection industry and should help build investors'
confidence in our company."
Ms. Jiazhen Li, the Chairwoman of
Shengrong, commented, "This
potential transaction with American Lorain would be an important
milestone for Shengrong's global expansion plan. We believe that
with more public exposure, we will be able to raise more public
awareness about industrial waste treatment and better serve the
global environmental protection mission."
ALN's board of directors (the "Board"), with the unanimous
agreement of all directors, formed a special committee of the Board
consisting exclusively of independent directors, to evaluate the
potential transaction and negotiate any agreements relating to such
transaction. The Board has granted the special committee the
exclusive authority to consider, review, evaluate and actively
negotiate the terms and conditions of such transaction on behalf of
the Company. The special committee is composed of Hongxiang Yu, Dekai Yin and Maoquan Wei, the
Company's independent directors. Mr. Yu serves as chair of the
special committee.
The potential transaction is subject to due diligence
investigations by the relevant parties, the negotiation and
execution of definitive agreements and the satisfaction of agreed
upon closing conditions. There can be no assurance that such
transaction will be consummated.
About American Lorain
Corporation
American Lorain Corporation is
China's leading chestnut,
convenience food product and frozen food product manufacturer. The
company currently has 13 world-class standards of food production
lines, which can supply more than 200 products. For domestic trade,
it has more than thirty offices, with its sales network covering
large cities, medium-size cities and coastal cities all over
China. Regarding international
trade, the products are exported to more than 40 countries and
regions, such as Japan,
South Korea, Taiwan, Southeast
Asia and Europe, which
provides our company a high reputation in the international
market.
About Hubei Shengrong
Hubei Shengrong, formed in 2009 in China, is a high-tech company engaged in the
development, manufacturing and sales of environmental protection
equipment with a focus on recycling industrial solid waste and
mining tailings. The company holds six Chinese invention
patents and two U.S. patents and has 82 employees. Hubei Shengrong
owns cutting edge technologies relating to physical magnetic
industrial solid wastes recovery and comprehensive utilization. By
using these technologies, the company can process a variety of
solid waste materials. Furthermore, these technologies
can collect valuable metal
material from solid waste without generating any chemical
pollution. Hubei Shengrong has received recognition from numerous
industry organizations and governmental agencies, including the
Ministry of Land and Resources of the
People's Republic of China and the Ministry of Industry and
Information Technology of the People's
Republic of China.
Forward-Looking Statements
This news release includes "forward-looking statements" within
the meaning of the "safe harbor" provisions of the United States
Private Securities Litigation Reform Act of 1995. Forward-looking
statements may be identified by the use of words such as
"estimate," "plan," "project," "forecast," "intend," "expect,"
"anticipate," "believe," "seek," "target" or similar expressions
other similar expressions that predict or indicate future events or
trends or that are not statements of historical matters. Such
forward-looking statements with respect to the benefits of the
proposed transaction, the future financial performance of ALN
following the proposed transaction, changes in the market for
Shengrong's products, and expansion plans and opportunities,
including future acquisition or business combinations are based on
current information and expectations, forecasts and assumptions,
and involve a number of judgments, risks and uncertainties.
Accordingly, forward-looking statements should not be relied upon
as representing ALN's views as of any subsequent date, and ALN does
not undertake any obligation to update forward-looking statements
to reflect events or circumstances after the date they were made,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws. You
should not place undue reliance on these forward-looking
statements. As a result of a number of known and unknown risks and
uncertainties, actual results or performance may be materially
different from those expressed or implied by these forward-looking
statements. Some factors that could cause actual results to differ
include, but are not limited to: (1) the occurrence of any event,
change or other circumstances that could give rise to the
termination of the proposed transaction; (2) the outcome of any
legal proceedings that may be instituted against Shengrong or ALN
following any future announcement of the proposed transaction; (3)
the inability to complete the proposed transaction due to the
failure to satisfy all conditions to the closing of the proposed
transaction; (4) the ability to obtain or maintain the listing of
ALN's common stock on the NYSE MKT following the proposed
transaction; (5) the risk that the proposed transaction disrupts
the parties' current plans and operations as a result of the
announcement and consummation of the proposed transaction described
herein; (6) the ability to recognize the anticipated benefits of
the proposed transaction, which may be affected by, among other
things, competition and the ability of the combined business to
grow and manage growth profitably; (7) costs related to the
proposed transaction; (8) changes in applicable laws or
regulations; (9) the possibility that Shengrong or ALN may be
adversely affected by other economic, business, and/or competitive
factors; and (10) other risks and uncertainties indicated from time
to time in the documents to be filed by ALN in connection with the
proposed transaction, including those under "Risk Factors" therein,
and other factors identified in ALN's prior and future filings with
the SEC, available at www.sec.gov.
Contact:
Zhanhai Yang
+86-153-1591-6609
sscw@usalr.cn
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SOURCE American Lorain
Corporation