CHINA ENV RES terminates the sale of all equity interests in First Rank Corporation
China EnvRes announced the termination of the sale of its wholly-owned subsidiary First Rank Corporation's equity interest, as the buyer failed to complete the transaction by August 11, 2025. The company has issued a termination notice to the buyer and forfeited the HKD 11.8 million deposit as compensation for breach of contract. The board believes that this termination will not have a significant impact on the group's business and financial condition
According to the announcement from China EnvRes (01130), it concerns the sale of all equity interests of its wholly-owned subsidiary First Rank Corporation and the transfer of shareholder loans owed by First Rank Corporation. As the buyer was unable to complete the transaction by August 11, 2025, the company's representative lawyer delivered a termination notice to the buyer's lawyer on August 11, 2025, to terminate the sale agreement (as supplemented and amended by the supplemental agreement and the second supplemental agreement, collectively referred to as "the supplemental agreements"). The company has exercised its rights under the sale agreement (as supplemented and amended by the supplemental agreements) to forfeit a total deposit of HKD 11.8 million, absolutely as agreed upon as liquidated damages.
The board believes that the termination of the sale agreement (as supplemented and amended by the supplemental agreements) will not have a significant adverse impact on the group's existing business, operations, and financial condition
