TORONTO, Nov. 16, 2018 /CNW/ - Boyuan Construction
Group, Inc., (TSX: BOY) ("Boyuan" or the "Company")
today provided further update on the delays it is experiencing for
transferring funds from its banking partners in China with respect to the redemption of the
Company's 11.5% unsecured convertible debentures due on
October 31, 2018 (the "Unsecured
Debentures"). The Company confirms that it has received a
notice of default from the trustee for the Unsecured
Debentures.
The Company has obtained a letter from one branch of Industrial
and Commerce Bank of China
("ICBC") addressed to the Company's wholly-owned subsidiary
that the Chinese operating entity controlled by the Company,
Zhejiang Boyuan Construction Co., Ltd. ("Boyuan China") has
deposit at the bank of approximately RMB¥33.34 million. The
Company also provided a screenshot of a bank account of Boyuan
China held at another branch of ICBC with approximately RMB¥7.19
million. Copies of the bank confirmation letter and account
screen shot are available on SEDAR under the Company's
profile. The total deposits are approximately RMB¥40.57
million, equivalent to approximately C$7.54
million based on HSBC Canada buying rate of November 15, 2018, exceeding the amount needed to
redeem the debentures in full. The Company also confirms that it
will be paying its debenture holders the additional interest
accrued since October 31, 2018.
"China continues to maintain a
strict foreign exchange control system that regulates funds flowing
out of the country," said Paul Law,
Chief Financial Officer of Boyuan Construction. "The state
discourages capital outflow by demanding banks to strengthen the
examination on documents and certificates, and to standardize the
forex management. In the case of our planned remittance to redeem
our unsecured debentures, the foreign control regulators and our
banks insisted that the tax department issue a 'clearance letter'
before the banks can remit our funds out. The requirement for a
clearance letter was never enforced when we remitted funds in the
past. We are working with the parties to resolve as quickly as
possible."
About Boyuan Construction Group, Inc.
Backed by a longstanding track record, Boyuan Construction
Group, Inc. ("Boyuan" or the "Company") has the
knowledge and expertise to design and build a wide range of
commercial and residential developments, as well as municipal
infrastructure and engineering projects. Based in Jiaxing City and
with a growing presence in both Zhejiang
Province and Hainan
Province, Boyuan focuses on construction projects in
China's fast-growing regions of
the Yangtze River Delta and the Hainan
Province. The Company's current project backlog includes
residential, commercial, industrial and mixed-use developments. For
more information visit www.boyuangroup.com.
Caution Regarding Forward-Looking Information:
Certain information contained in this news release constitutes
forward-looking information, which is information relating to
future events or the Company's future performance and which is
inherently uncertain. All information other than statements of
historical fact may be forward-looking information. Forward-looking
information is often, but not always, identified by the use of
words such as "seek", "anticipate", "budget", "plan", "continue",
"estimate", "expect", "forecast", "may", "will", "project",
"predict", "potential", "targeting", "intend", "could", "might",
"should", "believe" and similar words or phrases (including
negative variations) suggesting future outcomes or statements
regarding an outlook. Forward-looking information contained in this
news release includes, but is not limited to, management's
expectation to proceed with the redemption. Forward-looking
information involves known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ
materially from those anticipated in such forward-looking
information. The Company believes the expectations reflected in the
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be correct and readers
are cautioned not to place undue reliance on forward-looking
information contained in this news release. Some of the risks and
other factors which could cause results to differ materially from
those expressed in the forward-looking information contained in
this news release include, but are not limited to: political and
economic conditions in China and
other risks included in the Company's AIF for the fiscal year ended
June 30, 2018 and in the Company's
public disclosure documents filed with certain Canadian securities
regulatory authorities and available at www.sedar.com. The
forward-looking statements contained in this news release are made
as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking information, whether
as a result of new information, future events or otherwise, except
as otherwise required by law.
SOURCE Boyuan Construction Group, Inc.