Hanwei Energy Services Corp. completes $45 million special warrant private placement



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

    TSX.V: HE

    VANCOUVER, June 21 /CNW/ - Hanwei Energy Services Corp. (TSX-V: HE) (the
"Company") is pleased to report that it has completed the private placement of
9,000,000 special warrants (the "Special Warrants") at $5.00 per Special
Warrant (the "Offering"), previously announced on June 5, 2007. The Offering
was underwritten by Canaccord Capital Corporation, GMP Securities L.P and
Research Capital Corporation (collectively, the "Underwriters").
    Each Special Warrant is exercisable for one common share in the capital
of the Company without payment of any additional consideration on or before on
the date which is the earliest of: (i) the first business day after the date
of issuance of a receipt for a final prospectus qualifying the distribution of
the common shares issuable on exercise of the Special Warrants (the "Clearance
Date"); and (ii) that date which is four months and one day immediately
following the date of issue of the Special Warrants. In the event that the
Clearance Date has not occurred within 60 days following June 21, 2007, then
each Special Warrant shall become exercisable, for no additional
consideration, for 1.05 common shares (instead of one common share). The
Special Warrants are subject to a four month hold period. The Company intends
to file a short form prospectus to qualify for distribution the common shares
underlying the Special Warrants.
    The Company plans to use the net proceeds of the Offering to fund the
development and manufacture of products for the wind power market and for
general working capital.
    In connection with the Offering, the Underwriters a received a cash fee
in the amount equal to 6.0% of the gross proceeds of the Offering, as well as
warrants (the "Compensation Warrants") equal to 6.0% of the number of Special
Warrants sold pursuant to the Offering, with each Compensation Warrant
entitling the holder, at no additional cost, to one common share purchase
option (the "Compensation Options") during the period from the date of
issuance of the Special Warrants and ending on the earlier of (i) the
Clearance Date, and (ii) four months and one day following the date of
issuance of the Special Warrants. The Compensation Options will be exercisable
into common shares for 12 months following the date of issuance of the Special
Warrants at a price of $5.00 per common share.

    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 the date of this news release.
    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
proceed or close the Offering or any other financings.
    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 management's discussion and analysis
dated May 15, 2007, 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 THE DATE OF THIS NEWS RELEASE 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, Senior Vice President, Finance and
Business Development, (416) 804-9228, koishi@hanweienergy.com

Organization Profile

HANWEI ENERGY SERVICES CORP.

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