EX-99.3
29
v106642_ex99-3.htm
Unassociated Document
EMBARGOED
INFORMATION
DRAFT
RELEASE - CONFIDENTIAL - 4/18/2008 10:23 AM
Contact:
Sean
Mahoney
Ph.
310-867-0670
Sean@mahoney.net
ENERGY
RECOVERY LEADER CHINA ENERGY RECOVERY CLOSES
ACQUISITION
AND SECURES $8.5 MILLION IN A PRIVATE FINANCING
First-ever
financing from outside China
will
hasten growth and expansion
LOS
ANGELES, CA and SHANGHAI, CHINA - April 21, 2008
--
China
Energy Recovery, Inc. (OTCBB: CGYV) ("CER"), today
announced the closing of its acquisition of HAIE Hi-tech Engineering (Hong
Kong)
Company, Limited ("Hi-tech") and an $8.5 million convertible preferred stock
financing. Hi-Tech is an international leader in the design and construction
of
heat-energy
recovery
systems
for a variety of sectors including the petrochemical, refining, chemical, paper,
steel and cement industries,
with
primary operations in Shanghai, China,
CER
intends to use the net proceeds from the financing to accelerate growth of
its
operations through its wholly-owned subsidiary, Hi-Tech. The Company plans
to
immediately ramp its production efforts to deliver upon its existing orders
from
a rapidly expanding domestic and global customer base.
"This
acquisition and financing provide an opportunity to scale our business quickly,"
stated Mr. Wu Quinhuan, CER's new Chief Executive Officer as a result of the
acquisition. "Given the inability to secure working capital financing in China,
our business required this financing to be able to purchase the raw materials
to
deliver upon our extensive order backlog. CER has grown organically without
outside investment up until now however, at this point we're excited to be
attracting foreign investment. It will help our Company in our goal to achieve
a
market leadership position on a global level".
The
"energy recovery" sector of the alternative energy industry is gaining enormous
attention from global businesses. According to studies conducted for the U.S.
Environmental Protection Agency and Department of Energy, recycling energy
that
is currently wasted by U.S. manufacturers could generate nearly 200,000
megawatts (MW) of clean power, equivalent to about 20% of the U.S,'s entire
electricity generating capacity.
And in
a recently published McKinsey research report it was concluded that investment
in energy efficiency would yield a profit of about 17% worldwide. The report
also revealed that the most inefficient sector of energy use is the heavy
industry sector in China.
"China
is
the Saudi Arabia of wasted energy, and China Energy Recovery
is in exactly the right place at the right time", says CER Advisory Board member
and former Chairman of the White House Climate Change Task Force under Bill
Clinton, Roger Ballentine. "High energy costs and pressure to reduce emissions
make energy recycling extremely attractive. Capturing and
monetizing
wasted
energy and excess emissions represents the proverbial low-hanging
fruit."
Hi-Tech's
primary customer base has historically been in China, where 70% of the country's
energy needs are made up from the industrial sector. The country's growing
energy needs reached an annualized rate of 23% recently, and it's expected that
China will overtake the U.S. as the world's largest consumer of energy in the
near future. China's double-digit growth in energy usage is making it one of the
world's biggest and fastest growing users of renewable energy, which currently
accounts for approximately 7.5% of the country's primary energy supply.
In
connection with the acquisition and financing, on April 16, 2008, CER conducted
a 1-for-2 reverse stock split of its issued and outstanding capital stock
pursuant to which each two shares of CER's common stock issued and outstanding
on the record date of April 15, 2008 was converted into one share of CER's
common stock.
Investors
are encouraged to read in its entirety CER's Current Report on Form 8-K filed
with the Securities and Exchange Commission on April 21, 2008 regarding the
acquisition and financing and CER's management, operations and financial
information.
What
is Energy Recovery?
Industrial
facilities and power plants release significant amounts of excess heat into
the
atmosphere in the form of hot exhaust gases or high pressure steam. Energy
Recovery is the process of recovering vast amounts of that wasted energy and
converting it into usable electricity, dramatically lowering energy costs.
Energy Recovery also captures the majority of carbon emissions and other harmful
pollutants that would otherwise be released into the environment. It is
estimated that Energy Recovery systems installed in US industrial facilities
could produce up to 20% of US electricity needs without burning any additional
fossil fuel, and could help many industries to meet stringent environmental
regulations.
About
China Energy Recovery, Inc.
CER
is an
international leader in energy recovery systems, with a primary focus on the
Chinese market. CER's technology captures industrial waste energy to produce
low-cost electrical power, enabling industrial manufacturers to reduce their
energy costs, shrink their emissions footprint, and generate sellable emissions
credits. CER has deployed its systems throughout China and in such international
markets as: Egypt, Turkey, Korea, Vietnam and Malaysia. The Company focuses
on
numerous industries in which a rapid payback on invested capital is achieved
by
its customers, including: petro-chemicals, refining and power generation
(including Ethanol refining), coke processing, and the manufacture of paper,
cement and steel. CER continues to invest in R&D and plans to build China's
first state-of-the-art energy recovery system research and fabrication facility
to allow it to meet the increased demand for its products and services. For
more
information on CER, please visit: http://www.chinaenergyrecovery.com/s/Home.asp.
Information on CER's website does not comprise a part of this press
release.
Forward-Looking
Statement Disclaimer
This
press release includes "forward-looking statements" within the meaning of the
Securities Litigation Reform Act of 1995, as amended. All statements, other
than
statements of historical fact, included in the press release that address
activities, events or developments that the Company believes or anticipates
will
or may occur in the future are forward-looking statements. These statements
are
based on certain assumptions made based on experience, expected future
developments and other factors the Company believes are appropriate under the
circumstances. Such statements are subject to a number of assumptions, risks
and
uncertainties, many of which are beyond the control of the Company and may
not
materialize, including, without limitation, the efficacy and market acceptance
of the Company's products and services, the Company's ability to achieve
acceptable levels of sales and margins for its products and services and the
Company's ability to finance its operations and growth. Investors are cautioned
that any such statements are not guarantees of future performance. Actual
results or developments may differ materially from those projected in the
forward-looking statements as a result of many factors. Furthermore, the Company
does not intend (and is not obligated) to update publicly any forward-looking
statements, except as required by law. The contents of this release should
be
considered in conjunction with the warnings and cautionary statements contained
in the Company's recent filings with the SEC, including the Company's Current
Report on Form 8-K filed with the Securities and Exchange Commission on April
18, 2008.

EX - 99 . 3 29 v106642 _ ex99 - 3 . htm Un associated Document EMBARGOED INFORMATION DRAFT RELEASE - CONFIDENTIAL - 4 / 18 / 2008 10 : 23 AM Contact : Sean Mahoney Ph . 310 - 867 - 0670 Sean@mahoney.net ENERGY RECOVERY LEADER CHINA ENERGY RECOVERY CLOSES ACQUISITION AND SECURES $ 8.5 MILLION IN A PRIVATE FINANCING First - ever financing from outside China will hasten growth and expansion LOS ANGELES , CA and SHANGHAI , CHINA - April 21 , 2008 -- China Energy Recovery , Inc . ( OTCBB : CGYV ) ( " CER " ) , today announced the closing of its acquisition of HAIE Hi - tech Engineering ( Hong Kong ) Company , Limited ( " Hi - tech " ) and an $ 8.5 million convertible preferred stock financing . Hi - Tech is an international leader in the design and construction of heat - energy recovery systems for a variety of sectors including the petrochemical , refining , chemical , paper , steel and cement industries , with primary operations in Shanghai , China , CER intends to use the net proceeds from the financing to accelerate growth of its operations through its wholly - owned subsidiary , Hi - Tech . The Company plans to immediately ramp its production efforts to deliver upon its existing orders from a rapidly expanding domestic and global customer base . " This acquisition and financing provide an opportunity to scale our business quickly , " stated Mr . Wu Quinhuan , CER 's new Chief Executive Officer as a result of the acquisition . " Given the inability to secure working capital financing in China , our business required this financing to be able to purchase the raw materials to deliver upon our extensive order backlog . CER has grown organically without outside investment up until now however , at this point we ' re excited to be attracting foreign investment . It will help our Company in our goal to achieve a market leadership position on a global level " . The " energy recovery " sector of the alternative energy industry is gaining enormous attention from global businesses . According to studies conducted for the U . S . Environmental Protection Agency and Department of Energy , recycling energy that is currently wasted by U . S . manufacturers could generate nearly 200,000 megawatts ( MW ) of clean power , equivalent to about 20 % of the U . S , ' s entire electricity generating capacity . And in a recently published McKinsey research report it was concluded that investment in energy efficiency would yield a profit of about 17 % worldwide . The report also revealed that the most inefficient sector of energy use is the heavy industry sector in China . " China is the Saudi Arabia of wasted energy , and China Energy Recovery is in exactly the right place at the right time " , says CER Advisory Board member and former Chairman of the White House Climate Change Task Force under Bill Clinton , Roger Ballentine . " High energy costs and pressure to reduce emissions make energy recycling extremely attractive . Capturing and monetizing wasted energy and excess emissions represents the proverbial low - hanging fruit . " Hi - Tech 's primary customer base has historically been in China , where 70 % of the country 's energy needs are made up from the industrial sector . The country ' s growing energy needs reached an annualized rate of 23 % recently , and it ' s expected that China will overtake the U . S . as the world 's largest consumer of energy in the near future . China 's double - digit growth in energy usage is making it one of the world ' s biggest and fastest growing users of renewable energy , which currently accounts for approximately 7 . 5 % of the country 's primary energy supply . In connection with the acquisition and financing , on April 16 , 2008 , CER conducted a 1 - for - 2 reverse stock split of its issued and outstanding capital stock pursuant to which each two shares of CER 's common stock issued and outstanding on the record date of April 15 , 2008 was converted into one share of CER 's common stock . Investors are encouraged to read in its entirety CER 's Current Report on Form 8 - K filed with the Securities and Exchange Commission on April 21 , 2008 regarding the acquisition and financing and CER 's management , operations and financial information . What is Energy Recovery ? Industrial facilities and power plants release significant amounts of excess heat into the atmosphere in the form of hot exhaust gases or high pressure steam . Energy Recovery is the process of recovering vast amounts of that wasted energy and converting it into usable electricity , dramatically lowering energy costs . Energy Recovery also captures the majority of carbon emissions and other harmful pollutants that would otherwise be released into the environment . It is estimated that Energy Recovery systems installed in US industrial facilities could produce up to 20 % of US electricity needs without burning any additional fossil fuel , and could help many industries to meet stringent environmental regulations . About China Energy Recovery , Inc . CER is an international leader in energy recovery systems , with a primary focus on the Chinese market . CER 's technology captures industrial waste energy to produce low - cost electrical power , enabling industrial manufacturers to reduce their energy costs , shrink their emissions footprint , and generate sellable emissions credits . CER has deployed its systems throughout China and in such international markets as : Egypt , Turkey , Korea , Vietnam and Malaysia . The Company focuses on numerous industries in which a rapid payback on invested capital is achieved by its customers , including : petro - chemicals , refining and power generation ( including Ethanol refining ) , coke processing , and the manufacture of paper , cement and steel . CER continues to invest in R & D and plans to build China 's first state - of - the - art energy recovery system research and fabrication facility to allow it to meet the increased demand for its products and services . For more information on CER , please visit : http://www.chinaenergyrecovery.com/s/Home.asp . Information on CER 's website does not comprise a part of this press release . Forward - Looking Statement Disclaimer This press release includes " forward - looking statements " within the meaning of the Securities Litigation Reform Act of 1995 , as amended . All statements , other than statements of historical fact , included in the press release that address activities , events or developments that the Company believes or anticipates will or may occur in the future are forward - looking statements . These statements are based on certain assumptions made based on experience , expected future developments and other factors the Company believes are appropriate under the circumstances . Such statements are subject to a number of assumptions , risks and uncertainties , many of which are beyond the control of the Company and may not materialize , including , without limitation , the efficacy and market acceptance of the Company 's products and services , the Company 's ability to achieve acceptable levels of sales and margins for its products and services and the Company 's ability to finance its operations and growth . Investors are cautioned that any such statements are not guarantees of future performance . Actual results or developments may differ materially from those projected in the forward - looking statements as a result of many factors . Furthermore , the Company does not intend ( and is not obligated ) to update publicly any forward - looking statements , except as required by law . The contents of this release should be considered in conjunction with the warnings and cautionary statements contained in the Company 's recent filings with the SEC , including the Company ' s Current Report on Form 8 - K filed with the Securities and Exchange Commission on April 18 , 2008 .