TORONTO, April 26, 2024 (GLOBE NEWSWIRE) -- CF Energy Corp. (TSX-V: CFY) ("CF Energy" or the "Company", together with its subsidiaries, the "Group" or "China"), a leading clean energy service provider in the People's Republic of China (the "PRC") wishes to provide an update on the following:
Incorporate Electrochemical Storage technology into Energy Solutions Services
In the first quarter of 2024, CF Energy has successfully incorporated electrochemical storage technology into its battery swap station, which will help reduce the cost of service for the battery swap stations and further lowered the carbon footprint of the operation.
CF Energy entered into a letter of intent to jointly invest in regional electrochemical energy storage and peak sharing stations
CF Energy has engaged in a letter of intent with the Zi Gong, Gongjin District government in Sichuan province to jointly plan the investment in regional electrochemical energy storage and peak sharing stations (virtual power plants) and industrial and commercial energy storage projects, as well as the construction of regional energy storage stations and industrial and commercial energy storage facilities. Based on actual conditions such as urban planning, land use, power grid structure, and market demand, a layout plan for regional energy storage stations and industrial and commercial energy storage facilities will be formulated.
Purchase of bio-gas
In the first quarter of 2024, CF Energy signed a letter of intent to purchase bio-gas to further de-carbonize its overall natural gas distribution business of operations.
RMB36 million Loan Discharge Agreement Dispute
The Company wants to update on the status of its efforts to enforce its rights under the terms of the Loan Discharge Agreement dated May 25, 2017 among the Company, Sanya Changfeng Offshore Natural Gas Supply Co., Ltd. ("CF China") and Mr. Huajun Lin ("Mr. Lin") to require the estate of Mr. Lin (the "Estate") to invest an aggregate amount of RMB 36,000,000 in common shares of the Company (the "Investment") at a price of C$0.68 (being the 30 day volume weighted average trading price of the common shares of the Company preceding June 28, 2019).
On June 21, 2021, the Company together with CF China filed a contract dispute case (the "Claim") against the Estate in the Sanya Intermediate People's Court, Sanya City, Hainan Province, China (the "Sanya Court") to enforce the execution of the Loan Discharge Agreement and the Investment. The Sanya Court declined to take jurisdiction over the dispute. The Company appealed from that decision to the Hainan Provincial High People's Court, which dismissed the Company's appeal on September 5, 2022. The Company applied for a retrial on the basis of new evidence, and this application was rejected on February 24, 2023. On October 30, 2023, the Company filed the Claim in the Sanya Suburban People's Court. The Claim was dismissed by the Sanya Suburban People's Court on December 7, 2023.
A beneficiary of the Estate (Mingfei He) applied to the court in China for distribution of certain funds from the Estate. The court approved the distribution of funds to Mingfei He and other beneficiaries. The Company is exploring its options, if any, to compel the return of all funds distributed to the beneficiaries of the Estate so that the Estate can comply with the Loan Discharge Agreement. If no reasonable options are available to the Company, the Company will cease to pursue enforcement of the Loan Discharge Agreement.