Tornado Global Hydrovacs Announces Agency Framework for Mainland China
October 16 2019 - 4:30PM
Tornado Global Hydrovacs Ltd. (“Tornado” or the “Company”) (TGH:
TSX-V) is pleased to announce that its wholly-owned subsidiary
Tornado Hydrovacs Asia Pacific Holdings Limited (“Tornado Asia”)
has entered into an agency framework agreement with Shanghai World
Trade Resources Group Co. Ltd. (“ShanghaiCo.”) to procure, export
and import certain components used in the manufacture and assembly
of its proprietary hydrovac trucks on behalf of Tornado Asia in and
from mainland China (the “Agency Framework”).
Tornado Asia will pay a service fee to
ShanghaiCo. equal to 5% of the value of the components purchased by
Shanghai Co. on its behalf under the Agency Framework plus all
expenses incurred by ShanghaiCo. for the purchase, export or import
of such components. The Agency Framework also contemplates that
ShanghaiCo. may fund expenses on behalf of Tornado Asia in
connection with its services in consideration for a 12% annual
interest charge.
The Agency Framework is considered a related
party transaction under MI 61-101 – Protection of Minority Security
Holders in Special Transactions (“MI 61-101”) because Chuyu Wu
serves on the board of directors of each of ShanghaiCo., Tornado
Asia and the Company. However, the Agency Framework is exempt from
the formal valuation and minority approval requirements of MI
61-101 on the basis that the transactions contemplated under the
arrangement are for the purchase and sale of inventory in the
ordinary course of Tornado’s business. The Agency Framework has
been authorized and approved by the Company’s board of directors
with Chuyu Wu having declared his interest and did not participate
in vote approving the same.
The Company also announces that Tornado Asia has
advanced $116,606 U.S. dollar to Shanghai Co. for the purchase of
components pursuant to the Agency Framework.
About Tornado Global Hydrovacs
Ltd.
The Company designs and manufactures hydrovac
trucks in Canada and sells hydrovac trucks for excavation service
providers to the oil and gas industry and the municipal markets in
Canada and the USA. Hydrovac trucks use high pressure water to
pulverize soil and turn it into mud, and then vacuum up the
resulting mud into its tank. Tornado currently operates in North
America. The Company intends to expand its hydrovac business into
China and has established a wholly owned operation in China.
For more information about Tornado Global
Hydrovacs Ltd., visit www.tornadotrucks.com or contact:
Bill Rollins |
Al Robertson |
Chief Executive Officer |
Chief Financial Officer |
Phone: (403) 204-6333 |
Phone: (403) 204 -6324 |
Email: brollins@tghl.ca |
Email: arobertson@tghl.ca |
Advisory
The Exchange has in no way passed upon the
merits of the proposed transaction and has neither approved nor
disapproved the contents of this press release.
Neither the Exchange nor its Regulation Service
Provider (as that term is defined in policies of the Exchange)
accepts responsibility for the adequacy or accuracy of this news
release.
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