TORONTO, Oct. 6, 2011 /CNW/ - Boyuan Construction Group, Inc., (TSX: BOY, BOY.DB, BOY.DB.A) a fast-growing construction company in China of commercial, residential and municipal infrastructure projects, announced today that the Toronto Stock Exchange (the "TSX") has accepted a notice filed by Boyuan of its intention to make a normal course issuer bid (the "NCIB") with respect to its outstanding common shares (the "Common Shares").
The notice provides that Boyuan may, during the 12-month period commencing October 11, 2011 and ending no later than October 10, 2012, purchase through the facilities of the TSX up to 1,289,846 Common Shares, being approximately 5% of the total Common Shares issued and outstanding. The price which Boyuan will pay for any such shares will be the market price at the time of acquisition. During the period of this NCIB, Boyuan may make purchases under the NCIB by means of open market transactions or otherwise as permitted by the TSX, including pre-arranged crosses, exempt offers, private agreements under an issuer bid exemption order issued by a securities regulatory authority and block purchases in accordance with the TSX Company Manual. The actual number of Common Shares which may be purchased pursuant to the NCIB and the timing of any such purchases will be determined by senior management of Boyuan. Daily purchases under the NCIB will be limited to 2,853 Common Shares representing 25% of the average daily trading volume of 11,413 Common Shares, other than block purchases. All shares purchased by Boyuan under the NCIB will be cancelled.
As of September 30, 2011, there were 25,796,924 Common Shares, Cdn$7,899,750 aggregate principal amount of 11.75% secured subordinated debentures and Cdn$15,000,000 aggregate principal amount of 10% convertible unsecured subordinated debentures of Boyuan outstanding.
Boyuan believes that the Common Shares may from time to time trade in a price range that does not adequately reflect the value of such shares in relation to the business of Boyuan and its future business prospects. As a result, depending upon future price movements and other factors, Boyuan believes that the Common Shares may represent an attractive investment to Boyuan. Furthermore, purchases of Common Shares are expected to benefit all persons who continue to hold Common Shares by increasing their equity interest in Boyuan.
Boyuan has not purchased any of its common shares during the 12 months preceding the date of the press release.
About Boyuan Construction Group, Inc.
Based in Jiaxing City, China, Boyuan Construction Group, Inc. is in the
business of commercial building and residential construction, municipal
infrastructure and engineering projects. In its last three fiscal
years ending June 30, 2010, Boyuan completed more than 80 projects for
a number of private and public sector clients including Cargill and the
Dalian Shide Group, a billion dollar conglomerate whose partners
include DuPont, Mitsubishi and General Electric. Boyuan's current
project backlog includes residential, commercial, industrial and
mixed-use developments. From its operating bases in Zhejiang Province
and in Hainan Province, Boyuan focuses on construction projects in
China's fast-growing regions of the Yangtze River Delta, Hainan
Province and Shandong Province. For more information visit www.boyuangroup.com or follow us on Twitter @ www.twitter.com/boyuangroup.
Caution Regarding Forward-Looking Information:
Certain information contained in this press release constitutes
forward-looking information, which is information relating to future
events or Boyuan's future performance and which is inherently
uncertain. All information other than statements of historical fact
may be forward-looking information. Forward-looking information is
often, but not always, identified by the use of words such as "seek",
"anticipate", "budget", "plan", "continue", "estimate", "expect",
"forecast", "may", "will", "project", "predict", "potential",
"targeting", "intend", "could", "might", "should", "believe" and
similar words or phrases (including negative variations) suggesting
future outcomes or statements regarding an outlook. Forward-looking
information contained in this press release includes, but is not
limited to, Boyuan's plan to implement the NCIB and purchase Common
Shares under the NCIB, and Boyuan's belief in the benefits of the
NCIB. Forward-looking information involves known and unknown risks,
uncertainties and other factors that may cause actual results or events
to differ materially from those anticipated in such forward-looking
information. The Company believes the expectations reflected in the
forward-looking information are reasonable but no assurance can be
given that these expectations will prove to be correct and readers are
cautioned not to place undue reliance on forward-looking information
contained in this press release. Some of the risks and other factors
which could cause results to differ materially from those expressed in
the forward-looking information contained in this press release
include, but are not limited to: risk of macro-economy cycle, risk from
competition, risk from insufficient marketing to secure new projects,
risk in obtaining additional financing, risk involving permits and
licences, reliance on key management member, risk from supply of raw
materials, risk of financial leverage, risk of bad debts in accounts
receivables, risk involved in real estate development, foreign exchange
fluctuations, political and economic conditions in China and other
risks included in the Company's AIF for the fiscal year ended June 30,
2011 and in the Company's public disclosure documents filed with
certain Canadian securities regulatory authorities and available at www.sedar.com. The forward-looking information contained in this press release are
made as of the date hereof and the Company undertakes no obligation to
update publicly or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
otherwise required by law.