Adam Friedman Associates
China Energy Recovery
+1 212.918.2529 x18
Energy Recovery Secures $5 Million in New Loans
to be Used for CER’s New Production Facility
Feb. 4, 2010 — China Energy Recovery Inc. (CGYV.OB) (“CER”), an international
leader in the design, fabrication, installation and servicing of waste heat
recovery systems, announced today that it entered into a series of agreements to
secure $5 million (U.S.) in new debt financing, which will be applied to the
continued development and construction of its new production facility in
investors provided an aggregate of $4 million under separate loans of $2
million, each of which matures in January 2013 and bears interest at an annual
rate of 15.1%.
additional $1 million was provided through Haide Engineering (Hong Kong) Ltd., a
company that CER’s Chairman and CEO, Qinghuan Wu controls. This is an unsecured,
interest-only loan bearing an annual interest rate of 9.5% and matures in
transaction, CER has raised approximately $10 million in loans during the last
six months toward the design and construction of its new production facility,
which is scheduled to be completed this year. This facility will
provide CER with more efficient production, increase its overall production
capacity and position the company to continue to extend its operations in
building and installing cost efficient, high-performance waste heat recovery
systems in China and other markets.
is Waste Heat Energy Recovery?
facilities 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 as much as two-thirds of that wasted energy and converting it into
usable heat energy or electricity, dramatically lowering energy costs. Energy
recovery systems are also capable of lowering heat pollution and capturing
harmful pollutants that would otherwise be released into the environment. It is
estimated that if energy currently wasted by all the U.S. industrial facilities
could be recovered, it could produce power equivalent to 20% of U.S. electricity
generation capacity without burning any additional fossil fuel, and could help
many industries to meet stringent environmental regulations.
China Energy Recovery, Inc.
CER is an
international leader in designing, manufacturing and installing waste heat
energy recovery systems which provide facilities with greater energy
efficiency. The company’s primary focus is 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, Korea, Vietnam and Malaysia. CER focuses on numerous industries in which
a rapid payback on invested capital is achieved by its customers, including:
chemical, paper manufacturing, refining (including methanol refining), etc. 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
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 CER 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 that CER 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 CER and may not materialize, including,
without limitation, the efficacy and market acceptance of CER's products and
services, CER's ability to execute on its business plan and strategies, CER’s
financial condition and its ability to service its debt, CER’s ability to
finance and complete its new production facility, and CER's ability to
successfully complete orders and collect revenues therefrom. 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, CER 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 CER's filings with the Securities and Exchange Commission, including CER's
Annual Report on Form 10-K filed with the Securities and Exchange Commission on
March 30, 2009.