TAIYUAN CITY, China,
Feb. 12, 2013 /PRNewswire/ -- Longwei
Petroleum Investment Holding Ltd. (NYSE MKT: LPH) ("Longwei" or the
"Company"), an energy company engaged in the storage and
distribution of finished petroleum products in the People's Republic of China ("PRC"),
announced that it has received notice from the NYSE MKT that the
Company is not in compliance with Section 801(h) of the NYSE MKT
Company Guide (the "Company Guide") in that at least 50% of the
directors on the Company's Board of Directors are not independent
and Section 803(B)(2)(c) of the Company Guide in that the Company
has only one out of the requisite two members on its audit
committee. The Company's non-compliance with these Sections
is a result of the resignations of its former independent
directors, Douglas Cole and Xue Xiaoping, as previously disclosed
in the Company's Current Report on Form 8-K, filed with the
Securities and Exchange Commission on February 1, 2013.
As previously stated, Longwei believes the Geo Investing report
dated January 3, 2013 contains
numerous errors of facts, misleading speculations and malicious
interpretations of events. Nevertheless, in order to provide the
highest level of transparency to its shareholders, the Company and
its legal counsel in the U.S. and the PRC, as well as its auditor
are reviewing the allegations and management is cooperating with
the review process. The Company intends to take further action to
defend itself.
Pursuant to Section 802(b) of the Company Guide, the Company has
until the earlier of its next annual shareholders' meeting or one
year from the event that caused the failure to comply to regain
compliance with NYSE MKT's board independence requirements
(provided, however, that if the annual shareholders' meeting occurs
no later than 180 days following the event that caused the failure
to comply, the Company shall have 180 days from the date of such
event to regain compliance).
Pursuant to Section 803(B)(6)(b), the Company will have until
the earlier of its next annual shareholders' meeting or one year
from the occurrence of the event that caused the failure to comply
to regain compliance with NYSE MKT's audit committee composition
requirement, provided, however, that if the Company's annual
shareholders; meeting occurs no later than 75 days following the
event that caused the failure to comply, the Company shall instead
have 75 days from the date of such event to regain compliance.
NYSE MKT has notified the Company that it will be included
in the list of issuers that are not in compliance with the NYSE
MKT's continued listing standards within five days from the date of
such notice. The Company intends to regain compliance within
the allotted timeframe.
The Company will continue to release additional information
concerning the allegations in due course. Longwei is committed to
providing full and accurate disclosure to investors and to
rebutting any false claims that attempt to undermine confidence in
the Company.
About Longwei Petroleum Investment Holding Limited
Longwei Petroleum Investment Holding Limited is an energy
company engaged in the storage and distribution of finished
petroleum products in the People's
Republic of China. The Company's oil and gas operations
consist of transporting, storing and selling finished petroleum
products, entirely in the PRC. The Company's headquarters are
located in Taiyuan City, Shanxi
Province. The Company has a storage capacity for its
products of 220,000 metric tons ("mt") located at three storage
facilities within Shanxi: Taiyuan,
Gujiao and Huajie, which have an individual storage capacity of
approximately 50,000mt, 70,000mt, and 100,000mt,
respectively. The Company has the necessary licenses to
operate and sell petroleum products not only in Shanxi, but throughout the entire PRC. The
Company's storage tanks have the largest storage capacity of any
non-government operated entity in Shanxi.
The Company seeks to earn profits by selling its products at
competitive prices with timely delivery to transportation
companies, coal mining operations, power supply customers,
large-scale gas stations and small, independent gas stations. The
Company also earns revenue from agency fees by acting as a
purchasing agent for other intermediaries in Shanxi, and through limited sales of diesel
and gasoline at two retail gas stations, each located at the
Company's Taiyuan and Gujiao facilities. The Company seeks to
continue to expand its customer base and distribution platform
through the utilization of its large storage capacity, which allows
the Company the flexibility to take advantage of pricing, supply
and demand fluctuations in the marketplace.
Longwei was recently named to the Forbes list of
"Asia's 200 Best Under a Billion"
from a universe of 15,000 companies. Forbes ranked the
companies based on sales growth, earnings growth and return on
equity in the past 12 months and over three years. As was
reported, Longwei's three-year track record is 45% sales growth,
28% earnings per share growth and 28% return on equity. The
Forbes article can be found at:
http://www.forbes.com/sites/christinasettimi/2012/07/25/asias-200-best-under-a-billion.
For further information on Longwei, please visit
http://www.longweipetroleum.com. You may register to receive the
Company's future press releases on the website under 'Email
Alert.'
Forward-Looking Statements
Certain statements contained herein constitute
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements are based on current expectations, estimates and
projections about Longwei's industry, management's beliefs and
certain assumptions made by management. Readers are cautioned that
any such forward-looking statements are not guarantees of future
performance and are subject to certain risks, uncertainties and
assumptions that are difficult to predict. Because such statements
involve risks and uncertainties, the actual results and performance
of the Company may differ materially from the results expressed or
implied by such forward-looking statements. Given these
uncertainties, readers are cautioned not to place undue reliance on
such forward-looking statements. Longwei's operations are conducted
in the PRC and, accordingly, are subject to special considerations
and significant risks not typically associated with companies in
North America and Western Europe. These include risks associated
with, among others, the political, economic and legal environment
and foreign currency exchange. The Company's results may be
adversely affected by changes in the political and social
conditions in the PRC and by changes in governmental policies with
respect to laws and regulations, anti-inflationary measures,
currency conversion, remittances abroad, and rates and methods of
taxation. Other potential risks and uncertainties include but are
not limited to the ability to procure, properly price, retain and
successfully complete projects, and changes in products and
competition. Unless otherwise required by law, the Company also
disclaims any obligation to update its view of any such risks or
uncertainties or to announce publicly the result of any revisions
to the forward-looking statements made here. Readers should review
carefully reports or documents the Company files periodically with
the Securities and Exchange Commission.
Contact:
At the Company:
Michael Toups, Chief Financial
Officer
Tel: U.S. Office +1-727-641-1357
Email: mtoups@longweipetroleum.com
Web: http://www.longweipetroleum.com
SOURCE Longwei Petroleum Investment Holding Ltd.