Boyuan Provides Default Status Update
TORONTO, Oct. 17, 2012 /CNW/ - Boyuan Construction Group, Inc., TSX: BOY, BOY.DB, BOY.DB.A), a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that at the request of the Company a management cease trade order ("MCTO") has been ordered by the Ontario Securities Commission ("OSC") following a hearing held on October 15, 2012.
The hearing was held by the OSC as a result of Boyuan's September 25, 2012 announcement that it would be late in filing its audited annual financial statements for the fiscal year ended June 30, 2012 and related Management's Discussion & Analysis, Annual Information Form and CEO and CFO certification of filings (collectively, the "Annual Filings"), following the issuance by the OSC of a temporary management cease trade order at the request of the Company on October 2, 2012.
The MCTO restricts all trading in and all acquisitions of the securities of the Company, whether direct or indirect, by the Chief Executive Officer and the Chief Financial Officer of the Company until two full business days following the receipt by the OSC of all Annual Filings. The MCTO will not affect the ability of persons who are not insiders of Boyuan to trade its securities
Pursuant to the provisions of the Alternative Information Guidelines specified by NP 12-203, the Company reports that, since the issuance of its Default Announcement on October 2, 2012, except as stated in this Default Status Report, there have not been any material changes to the information contained therein; nor any failure by the Company to fulfill its intentions as stated therein with respect to satisfying the provisions of the alternative information guidelines, and there are no additional defaults or anticipated defaults subsequent to the disclosure therein, other than the delay in filing the Required Filings. Further, there are no additional material changes respecting the Company and its affairs that have not been generally disclosed.
Until the Required Filings are filed, the Company intends to continue to satisfy the provisions of the Alternative Information Guidelines specified by NP 12-203 by issuing bi-weekly Default Status Reports in the form of news releases. The Company intends to file, if required, its next Default Status Report on or about October 30, 2012.
The delay was a result of Boyuan having received notice from its auditor that it was not able to provide an audit opinion by the filing deadline. Boyuan intends to co-operate with the auditor to resolve any outstanding issues and hopes to file the Annual Filings as soon as possible.
A copy of the MCTO can be found at the Company's website at www.boyuangroup.com.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the business of commercial building and residential construction, municipal infrastructure and engineering projects. In its last three fiscal years ending June 30, 2011, Boyuan completed more than 80 projects for a number of private and public sector clients. Boyuan's current project backlog includes residential, commercial, industrial and mixed-use developments. From its operating bases in Zhejiang Province and in Hainan Province, Boyuan focuses on construction projects in China's fast-growing regions of the Yangtze River Delta, Hainan Province and Shandong Province. For more information visit www.boyuangroup.com.
Caution Regarding Forward-Looking Information:
Certain information contained in this press 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 press release includes, but is not limited to, management's expectation to make the Annual Filings and management's intention to comply with the Alternative Information Guidelines. 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 press 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 press release include, but are not limited to: risk of regulatory authorities not granting the MCTO, risk of the terms of the MCTO being different from anticipated, risk of macro-economy cycle, risk from competition, risk from insufficient marketing to secure new projects, risk in obtaining additional financing, risk involving permits and licences, reliance on key management member, risk from supply of raw materials, risk of financial leverage, risk of bad debts in accounts receivables, risk involved in real estate development, foreign exchange fluctuations, political and economic conditions in China and other risks included in the Company's AIF for the fiscal year ended June 30, 2011 and in the Company's public disclosure documents filed with certain Canadian securities regulatory authorities and available at www.sedar.com. The forward-looking information contained in this press 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.For further information:
Boyuan Construction Group, Inc.
Mr. Paul Law, CFO
+(852) 9329 5088
(416) 815 0700 ext. 253