TSX Venture Exchange: PRH
LONDON, ON, June 17, 2014 /CNW/ - Pearl River Holdings Limited ("Pearl River") is pleased to announce that the Board of Directors of Pearl River has approved the review of strategic alternatives in an effort to maximize shareholder value.
Calendar year 2014 has been a milestone year for Pearl River. Having established an additional new production facility dedicated to the manufacturing, processing, assembly and distribution of hard plastic coolers and hard/soft coolers, Pearl River hopes to realize an improvement in its operating margins resulting from the production efficiencies from its new production facility. "The addition of the new factory has expanded our production capacity and product offerings, and is allowing us to service increasing demand within China and the export markets," said Chief Executive Officer George Lunick.
In light of the above, the Board of Directors is pursuing a review of strategic alternatives to capitalize on Pearl River's successes in an effort to maximize shareholder value. As part of the review process, Pearl River has executed a consulting agreement (the "Advisory Services Agreement") with Delphi Asesores, S.A. de C.V ("Delphi"). Pursuant to the Advisory Services Agreement, Delphi will review, assess and advise the Board of Directors on all available options for maximizing shareholder value including, but not limited to, the sale of all or a portion of Pearl River, joint ventures and other business combinations involving Pearl River. As a first step to advising the Board of Directors, Delphi will prepare an independent valuation of Pearl River. Delphi since its foundation in 1990 has provided financial advisory services, corporate financial services, business valuation and merger and acquisition services to public and private companies in the USA, Canada and Mexico.
At this time, no decision on any particular strategic alternative or transaction has been reached and there are no agreements, letters of intent or term sheets whatsoever with respect to any particular strategic alternative or transaction. There is no guarantee that any future sale, joint venture or business combination will occur, and it is possible that no future sale, joint venture or business combination will occur despite undertaking this review of strategic alternatives. A further news release will be issued in the event that Pearl River enters into any agreement or has material information in respect of its review process.
About Pearl River
Pearl River, through its subsidiary, is in the business of manufacturing and distributing plastic products in China, Australia and the United States.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain forward-looking information. All statements included herein, other than statements of historical fact, are forward-looking information and such information involves various risks and uncertainties. In particular, this news release contains forward-looking information in respect of potential strategic alternatives and transactions that Pearl River may pursue including, but not limited to, a sale, joint venture or other business combination involving Pearl River. There can be no assurance that such information will prove to be accurate, and actual results and future events could differ materially from those anticipated in such information. This forward-looking information reflects Pearl River's current beliefs and is based on information currently available to Pearl River and on assumptions Pearl River believes are reasonable. These assumptions include, but are not limited to: the current share price of Pearl River's common shares; the ability of Pearl River to find suitable partners or purchasers and the ability of Pearl River to negotiate sale, joint venture or other such agreements on terms acceptable to Pearl River; Pearl River's general and administrative costs remaining constant; and the market acceptance of Pearl River's corporate strategy. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of Pearl River to be materially different from those expressed or implied by such forward-looking information. Such risks and other factors may include, but are not limited to: general business, economic, competitive, political and social uncertainties; capital market conditions and market prices for securities; the actual results of current development or operational activities; competition; changes in project parameters as plans continue to be refined; lack of insurance; delay or failure to receive board or regulatory approvals; changes in legislation, including environmental legislation, affecting Pearl River; timing and availability of external financing on acceptable terms; conclusions of economic evaluations; and lack of qualified, skilled labour or loss of key individuals. A description of other assumptions used to develop such forward-looking information and a description of other risk factors that may cause actual results to differ materially from forward-looking information may be found in Pearl River's disclosure documents on the SEDAR website at www.sedar.com. Pearl River does not undertake to update any forward-looking information except in accordance with applicable securities laws.
SOURCE Pearl River Holdings Limited
For further information: Mr. George Lunick, President and Chief Executive Officer, Telephone (519) 679-1200.