GreenHunter Energy Announces Sale of Equity Ownership Interest in Chinese Wind Turbine Manufacturer for $9.1 Million

October 28, 2009 10:04 AM EDT

GRAPEVINE, Texas--(BUSINESS WIRE)-- GreenHunter Energy, Inc. (NYSE Amex: GRH), announced today the execution and closing of a Share Purchase Agreement for the sale of GreenHunter's equity ownership interest in Guangdong MingYang Wind Power Technology Co., Ltd. ("MingYang"), a manufacturer of industrial scale wind turbines located in the People's Republic of China. GreenHunter acquired a minority equity ownership interest in MingYang in late 2007.

Pursuant to the terms of the Share Purchase Agreement, GreenHunter Energy, Inc. has transferred 100% of its ownership interest in Guangdong MingYang Wind Power Technology Co., Ltd. to DT Capital China Growth Fund L.P. for a cash payment of $9,110,000.

Commenting on the sale of the Company's equity interest in Guangdong MingYang Wind Power Technology Co., Ltd., Mr. Gary C. Evans, Chairman and CEO of GreenHunter Energy, Inc., stated, "When we originally made this investment in late 2007, the primary purpose was to form a strategic alliance with a Chinese wind turbine manufacturer that would deliver new turbines to us for use at our Company owned projects. We had previously negotiated favorable terms on deliverability timelines and purchase price. The wind turbine industry here in the U.S. has substantially changed since that time with ample supply of product and substantially improved delivery schedules available today. Therefore, this strategic investment no longer made sense to our company and the cash received certainly improves our working capital position. GreenHunter Energy will report a capital gain on its investment in MingYang during the fourth quarter of this year."

Forward-Looking Statements

Any statements in this press release about future expectations and prospects for GreenHunter Energy and its business and other statements containing the words "believes," "anticipates," "plans," "expects," "will" and similar expressions constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the substantial capital expenditures required to fund its operations, the ability of the Company to implement its business plan, government regulation and competition. GreenHunter Energy undertakes no obligation to update these forward-looking statements in the future.

GreenHunter Energy is focused on the renewable energy sectors of wind, hydro, geothermal, solar, biofuels, and biomass power plants. Our assets consist of leases of real property for future development of wind energy projects located in Montana, New Mexico, California, Texas, Wyoming and The People's Republic of China, the nation's largest biodiesel refinery located in Houston, Texas, a biomass-fired power plant located in Brawley, California, and an option to lease acreage associated with a terminaling facility in Port Sutton, Florida. Headquartered in Grapevine, Texas, GreenHunter Energy was formed to be the first publicly traded renewable energy company based in the U.S. that provides to investors a portfolio of diversified assets in the alternative energy sector. Additional information about GreenHunter Energy may be found at www.greenhunterenergy.com.

    Source: GreenHunter Energy, Inc.

Related Categories

Press Releases

Stocks Mentioned

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?