Hanwei closes $30 million private placement



    /NOT FOR DISTRIBUTION TO THE U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION
    IN THE UNITED STATES/

    VANCOUVER, April 2 /CNW/ - Hanwei Energy Services Corp. (the "Company")
is pleased to announce that it has closed in escrow a brokered private
placement, previously announced on March 21, 2007, of 13,953,500 common shares
in the capital of the Company (the "Shares") at $2.15 per Share for gross
proceeds of $30,000,025 (the "Offering"). The Offering was arranged by a
syndicate of investment dealers led by Canaccord Capital Corporation and
included GMP Securities L.P. and Research Capital Corporation.
    The gross proceeds from the sale of Shares will be held in escrow and
released to the Company, together with accrued interest, concurrent with the
issuance of the Shares, provided that the audited financial statements of the
Company for the year ended December 31, 2006 to be made available on or before
April 30, 2007 show sales of not less than $22.5 million and net income of not
less than $3.25 million (after giving effect to the non-controlling interest
in the Company) (the "Financial Targets"). If the Financial Targets are not
met, Subscribers will be afforded the right to withdraw from the Offering. The
Offering will proceed in any event if, after giving effect to withdrawal
rights, a minimum of $15 million of gross proceeds remains in escrow and
available for subscriptions.
    The proceeds of the Offering will be used to pay the costs of the
Offering, to increase production capacity of high pressure FRP pipe for the
oil industry at the Company's plant in Daqing and at a new plant to be
established in Tianjin, China, to expand production capacity of FRP products
for the coal and gas industries at the Company's plant in Beijing, to fund
potential expansion into regional markets and FRP products for wind power, for
general working capital and for the repayment of debt (including related party
debt).

    THE TSX VENTURE EXCHANGE NEITHER APPROVED NOR DISAPPROVED THE CONTENTS OF
    THIS NEWS RELEASE. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL
    OR THE SOLICITATION OF AN OFFER TO BUY SECURITIES IN ANY JURISDICTION.
    THE SECURITIES REFERRED TO IN THIS NEWS RELEASE WILL NOT AND HAVE NOT
    BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933 AND MAY
    NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN
    APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS.

    FORWARD LOOKING INFORMATION

    Certain information in this news release is forward-looking within the
meaning of certain securities laws, and is subject to important risks,
uncertainties and assumptions. This forward-looking information includes,
among other things, information with respect to management's estimates of
capital requirements, as well as information with respect to the Company's
beliefs, plans, expectations, anticipations, estimates and intentions. The
words "may", "could", "should", "would", "suspect", "outlook", "believe",
"anticipate", "estimate", "expect", "intend", "plan", "target" and similar
words and expressions are used to identify forward-looking information. The
forward-looking information in this news release describes the Company's
expectations as of April 2, 2007.
    The results or events anticipated or predicted in such forward-looking
information may differ materially from actual results or events. Material
factors which could cause actual results or events to differ materially from a
conclusion, forecast or projection in such forward-looking information
include, among others: general economic factors, adverse industry events, its
ability to make and integrate acquisitions, industry and government
regulation, risks associated with integrating new production lines, risks
associated with entering new product lines and markets, risks associated with
establishing new production facilities and the potential for costs over-runs
or delays associated with construction, risks that the Company may be unable
to procure needed capital for its growth plans, risks that the Company may not
be able to obtain licenses for technology needed for its expansion plans on
terms that are acceptable to the Company and risks that the Company may not
close the Offering if the Financial Targets or other conditions are not met.
    The Company cautions that the foregoing list of material factors is not
exhaustive. When relying on the Company's forward-looking information to make
decisions, investors and others should carefully consider the foregoing
factors and other uncertainties and potential events. The Company has assumed
a certain progression, which may not be realized. It has also assumed that the
material factors referred to in the previous paragraph will not cause such
forward-looking information to differ materially from actual results or
events. However, the list of these factors is not exhaustive and is subject to
change and there can be no assurance that such assumptions will reflect the
actual outcome of such items or factors. For additional information with
respect to certain of these and other factors, refer to the risks and
uncertainties section of the Company's Filing Statement dated November 23,
2006 and its Material Change Report dated March 7, 2007, both filed with
Canadian securities regulators, which is available on SEDAR at www.sedar.com.

    THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS NEWS RELEASE REPRESENTS
THE EXPECTATIONS OF THE COMPANY AS OF APRIL 2, 2007 AND, ACCORDINGLY, IS
SUBJECT TO CHANGE AFTER SUCH DATE. HOWEVER, THE COMPANY EXPRESSLY DISCLAIMS
ANY INTENTION OR OBLIGATION TO UPDATE OR REVISE ANY FORWARD-LOOKING
INFORMATION, WHETHER AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR
OTHERWISE, EXCEPT AS REQUIRED BY APPLICABLE LAW.





For further information:

For further information: Kim Oishi, Chief Financial Officer, (416)
804-9228, koishi@hanweienergy.com

Organization Profile

HANWEI ENERGY SERVICES CORP.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890