Hanwei to sell Harvest Longwall High Pressure FRP Pipe Co.

Vancouver-based Hanwei Energy Services Corp. has announced that it has arranged, as vendor, an arm’s length purchase and sale agreement dated Nov. 24, 2021 with DanQing Tujiao Trading Co., Ltd., as purchaser for the sale of Harvest Longwall High Pressure FRP Pipe Co. Ltd. for $1,050,000.

In a news release, Hanwei officials said that Harvest owns all of Hanwei’s plant and equipment for the production of fibreglass reinforced pipe, which comprises all of the company’s business and assets. The agreement also includes the provision of a maximum of $215,000 in working capital from Harvest to the company up to the closing date of the agreement, the assumption of a debt in the amount of $1,455 million owed by Hanwei to a third party.

Additionally, the agreement also includes a waiver and forgiveness of all of the company’s indebtedness to Harvest estimated to be $11,334 million, and an indemnity from the purchaser to the company and its representatives for all future liabilities of Harvest, and a general release from Harvest.

The proposed sale transaction is subject to significant conditions to closing, including the approval of the shareholders of the company by special resolution at its annual general and special meeting to be held on Jan. 12, 2022, and regulatory approvals.

The board of directors of Hanwei will complete the transition of the company from the fibreglass reinforced pipe business, and expect to maintain shareholder liquidity through listing on an appropriate stock exchange, pending realization of a new business opportunity.

Hanwei manufactures and sells high pressure fiberglass reinforced plastic (FRP) pipes for the oil and gas, water transmission, and salt mining industries.