SHANGHAI, January 9, 2012 /PRNewswire-Asia/ -- China Energy Recovery Inc. (CGYV.PK) ("CER"), an international leader in the design, fabrication and installation of waste heat recovery systems, today announced it has entered into two loan agreements and the share repurchase program.
On December 29, 2011, CER Energy Recovery (Shanghai) Co., Ltd. ("CER Shanghai"), a wholly-owned subsidiary of CER, borrowed $1,057,682 (RMB 6,680,000) from Industrial and Commercial Bank of China Limited, Zhangjiang Branch. The loan carries an annual interest rate of 6.405%. The term of the loan is six months commencing from December 29, 2011 to June 28, 2012. The loan is secured by a pledge of several bank acceptance notes owned by CER Shanghai in the amount of $1,176,433 (RMB 7,430,000).
Also in December, 2011, CER Shanghai agreed to borrow $789,639 (RMB 5,000,000) from Shanghai Pudong Zhanjiang Micro-credit Co., Ltd. The loan is secured by a mortgage of a building in Shanghai, which is held by Jiangsu SOPO (Group) Company Limited and guaranteed by Mr. Qinghuan Wu, the Chairman and Chief Executive Office of CER. The loan carries an annual interest rate of 12% and the due date of the loan is June 9, 2012.
The loan was drawn down in two installments, with $315,353 (RMB 2,000,000) and $474,286 (RMB 3,000,000) being drawn down on December 15, 2011 and December 22, 2011, respectively.
On December 22, 2011, CER announced that the Board of Directors has authorized a share repurchase program of up to $500,000. The funding for the repurchases will be from cash on hand.
The Board of Directors considered a number of options for the use of the current cash available to CER and the anticipated cash flow and various capital needs over the near term, and believed that initiation of a share repurchase program at this time provides flexibility to enhance shareholder value relative to the current stock price
The manner, price, number and timing of the share repurchases will be subject to a variety of conditions, including market conditions and applicable U.S. Securities and Exchange Commission rules and regulations. CER expects that the shares will be purchased from time to time, through privately negotiated transactions or open market transactions, or otherwise. The share repurchase program may be suspended, modified or discontinued at any time, at the full discretion of CER, without prior notice. CER may determine not to use the full amount of funds available or may determine to increase the funds available for the repurchase program
What is Waste Heat Energy Recovery?
Industrial facilities release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high-pressure steam. Energy recovery is the process of recovering as much as two-thirds of that wasted energy and converting it into usable heat energy or electricity, dramatically lowering energy costs. Energy recovery systems are also capable of lowering heat pollution and capturing harmful pollutants that would otherwise be released into the environment. It is estimated that if energy currently wasted by all the U.S. industrial facilities could be recovered, it could produce power equivalent to 20% of U.S. electricity generation capacity without burning any additional fossil fuel, and could help many industries to meet stringent environmental regulations.
About China Energy Recovery, Inc.
CER is an international engineering and manufacturing company that specializes in the design, construction and installation of waste heat energy recovery systems that captures and converts industrial waste energy produced by heavy industrial processes such as petroleum and chemicals refining, paper manufacturing and refining into low-cost electrical power, which enables industrial manufacturers to reduce their energy costs, shrink their emissions footprint and generate salable emissions credits. The company's primary focus is the Chinese market; however, CER's systems are operating in heavy industrial plants located in Egypt, Korea, Vietnam and Malaysia. CER is building one of China's largest state-of-the-art, energy recovery system research and fabrication facility, which will allow CER to meet increased demand for its products and services. For more information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp. Information on CER's website does not comprise a part of this press release.
Forward-Looking Statement Disclaimer
This press release includes "forward-looking statements" within the meaning of the Securities Litigation Reform Act of 1995, as amended. All statements, other than statements of historical fact, included in the press release that address activities, events or developments that CER believes or anticipates will or may occur in the future are forward-looking statements. These statements are based on certain assumptions made based on experience, expected future developments and other factors that CER believes are appropriate under the circumstances. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of CER and may not materialize, including, without limitation, the efficacy and market acceptance of CER's products and services, CER's ability to execute on its business plan and strategies and CER's ability to successfully complete orders and collect revenues therefrom. Investors are cautioned that any such statements are not guarantees of future performance. Actual results or developments may differ materially from those projected in the forward-looking statements as a result of many factors. Furthermore, CER does not intend (and is not obligated) to update publicly any forward-looking statements, except as required by law. The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in CER's filings with the Securities and Exchange Commission.
