Barron Partners Encourages the CEO and Board of Directors of China Power Equipment Corporation Inc. to Buy Back Shares and to Pay Cash Dividend to all Shareholders
NEW YORK, June 6, 2012 /PRNewswire/ -- Barron Partners LP's CEO, Andrew Barron Worden, today stated, "We strongly encourage the CEO and Board of Directors of China Power Equipment Corporation Inc. to buy back shares and to pay cash dividend to all shareholders."
On May 25th 2012, Barron Partners requested that China Power Equipment Corporation Inc. (OTCBB: CPQQ) buy back shares and pay cash dividend to all shareholders by utilizing a portion of the cash, which is $24,541,712 on the balance sheet as of March 31st, 2012. In the letter we urged the CEO and the board to act in the interests of the shareholders.
In addition, Barron Partners has agreed to waive the dividend restriction in preferred share agreement, and allow for a cash dividend to be paid to all common shareholders so long as it is also paid to us on our preferred stock on an as-if-converted to common stock basis. However, China Power Equipment Corporation refused to act in the interests of the shareholders. As a significant shareholder in China Power Equipment Corporation, we believe that the Company has the obligation to act in the interest of the shareholders and increase value for the shareholders by repurchasing of shares and pay cash dividend.
Barron Partners LP is an international private investment fund with a primary focus on profitable cleantech companies. Barron has invested over $450 million of its capital since its formation in 2002. For more information about Barron Partners, visit www.barronpartners.com.
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