CN Resources Inc. (OTCQB: CNRR) (the 'Company' or 'CNRR'), a Nevada Corporation, has filed Current Report and is pleased to provide the following important updates.
On April 25, 2014, the CN Resources Inc. (the 'Company') became a party to a Stock Purchase Agreement (the 'Agreement') between Shanghai Yuankai Group Co., Ltd. (the 'Purchaser') and Oliver Xing (the 'Seller'). The Agreement states that: (i) the Purchaser will purchase from the Seller 14 million restricted shares from the Seller for a price of $0.15 per share; (ii) the Company will increase its Board of Directors to three persons and the Purchaser will be entitled to nominee two individuals to the Board of Directors; (iii) in the event that the Company decides to raise additional capital, the Purchaser and Seller will commit to further subscribe for $5 million and $1 million, respectively, of the Company's shares from treasury at a price and on terms determined by the Board of Directors; (iv) the Purchaser acquired the restricted shares for its own account and is for investment purpose only.
As a result of the consummation of the Stock Purchase Agreement, the Control of the Company is changed to Shanghai Yuankai Group Co., Ltd. After this acquisition, the Purchaser directly owns 14 million restricted common stocks representing 53.64% of total issued and outstanding shares of the Company. The acquisition is for the Purchaser's own account, for investment purpose only and is funded from the Purchaser's own account. There is no other agreement, arrangement or understanding between the new control person and previous control person other than disclosed herein.
"This is a milestone in our Company's pursuit of its corporate growth strategy," commented Oliver Xing, Chief Executive Officer of the Company. "We welcome our new significant shareholder on board and now we will focus our attention on executing our growth strategy to build up the Company and create wealth for our shareholders."
CN Resources Inc. (OTCQB: CNRR)
CN Resources inc. is a disciplined and managed risk oil exploration and development company with activities focused on Western Canada. The Company believes that the best value creation opportunities are in areas where political risks are low, significant oil has been recovered and plenty oil still in place, and substantive and accretive business opportunities exist.
CN Resources Inc.'s immediate focus is to co-develop producing oil wells on existing reserves, capture offset opportunities and maximize re-entry opportunities that are accretive to our shareholders. CN Resources will focus on growth opportunities in Western Canada.
ON BEHALF OF THE BOARD OF DIRECTORS
Oliver Xing, CPA. CA
This press release contains forward-looking statements (as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with its operations in the United States, Canada and elsewhere; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
The United States Securities and Exchange Commission permits resources companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We may use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.
This press release does not constitute an offer to buy or an invitation to sell, or the solicitation of an offer to buy or invitation to sell, any securities of CN Resources Inc.
Readers are encouraged to refer to our filings with the Securities and Exchange Commission for further information.
CN Resources, Inc.
SOURCE: CN Resources, Inc.