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