DanQing Tujiao Trading Co., Ltd. signed a non-binding agreement to acquire Daqing Harvest Longwall High Pressure FRP Pipe Co., Ltd. from Hanwei Energy Services Corp. (TSX:HE) for CNY 68.9 million on October 18, 2021. DanQing Tujiao Trading Co., Ltd. entered into a purchase and sale agreement to acquire Daqing Harvest Longwall High Pressure FRP Pipe Co., Ltd. from Hanwei Energy Services Corp. (TSX:HE) for CNY 68.9 million on November 24, 2021. The consideration includes the payment of CAD 1,050,000 and the purchaser's assumption of all liabilities and obligations of Harvest. The agreement also includes the provision of a maximum of CAD 215,000 in working capital from Harvest to the company up to the closing date of the agreement, the assumption of a debt in the amount of CAD 1,455,000 owed by Hanwei to a third party, a waiver and forgiveness of all of the company's indebtedness to Harvest estimated to be CAD 11,334,000, and an indemnity from the purchaser to the company and its representatives for all future liabilities of Harvest, and a general release from Harvest. The proposed sale transaction is subject to significant conditions to closing, include the approval of the shareholders of the company by special resolution at its Annual General and Special Meeting to be held on January 12, 2022, and regulatory approvals. As of January 12, 2022, the transaction is approved by shareholders of Hanwei Energy Services Corp. Jennifer Lucas and Michael Evans of Evans & Evans, Inc. acted as fairness opinion provider to Hanwei Energy.

DanQing Tujiao Trading Co., Ltd. completed the acquisition of Daqing Harvest Longwall High Pressure FRP Pipe Co. Ltd from Hanwei Energy Services Corp. (TSX:HE) on February 1, 2022.