TORONTO, June 15, 2016 /CNW/ - Boyuan Construction Group, Inc., ("Boyuan" or the "Company") (TSX: BOY, BOY.DB.A), a growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that it has received acceptance from the Toronto Stock Exchange (the "TSX") with respect to a normal course issuer bid (the "NCIB") to purchase: up to $1,000,000 principal amount of its 11.5% convertible unsecured subordinated debentures due October 31, 2018 (the "Debentures") (BOY.DB.A) representing 10% of the total principal amount of the issued and outstanding of Debentures in the public float as at May 31, 2016
Purchases of the Debentures pursuant to the NCIB may be made through the facilities of the TSX or other Canadian marketplaces commencing on June 17, 2016 and ending on June 16, 2017, or such earlier time as the NCIB is completed or terminated by the Company. Any purchases made pursuant to the NCIB will be made in accordance with the rules of the TSX and will be made at market price at the time of purchase. All Debentures purchased by Boyuan pursuant to the NCIB will be cancelled.
As of May 31, 2016, there were 25,420,065 common shares and Cdn$10,000,000 aggregate principal amount of the Debentures of Boyuan outstanding.
The average daily trading volumes for the six month period ended May 31, 2016 was $3,696 principal amont with respect to the Debentures. Under the NCIB, the maximum number of securities that the Company may purchase on a daily basis (other than block purchase exemptions) is $1,000 principal amount of the Debentures. The actual number of Debentures purchased for cancellation and the timing of such purchases will be determined by the Company. There cannot be any assurance as to how many Debentures will ultimately be acquired by the Company under the NCIB.
By repurchasing the Debentures, the Company will reduce the interest payments payable with respect to the Debentures and reduce the Corporation's repayment obligations if purchases are made below par, which will result in a cash savings for the Company in the long term. It may also serve to minimize potential future dilution of the Company's shares.
Boyuan has not purchased any of its Debentures during the twelve months preceding the date of the press release.
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, 2015, Boyuan completed 45 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 and Hainan Province. For more information visit www.boyuangroup.com.
Certain information contained in this press release constitutes forward-looking information, which is information relating to future events or Boyuan'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, Boyuan's plan to implement the NCIB and purchase Debentures under the NCIB, and Boyuan's belief in the benefits of the NCIB. 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 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, 2015 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.