FUQING CITY, CHINA, United States, via eTeligis Inc., 07/23/2014 - - GuanweiRecycling Corp. (the "Company" orGuanwei") (Nasdaq:GPRC), China's leading clean tech manufacturer of recycled low density polyethylene(LDPE), reported today it received a letter of notification from the Depository Trust Company ("DTC") on July 18,2014, that DTC intends to suspend all book entry services provided to DTC participants with respect to GPRCshares (the "Global Lock"). The letter indicated the Company has until August14, 2014 to provide a writtenresponse stating its objections to the DTC action, after which the latter will make either a determination or a requestfor further information within 20 days.
The DTC decision is the result of a recent SEC enforcement action againstS. Paul Kelley and four other individuals, in which the SEC alleges that Kelly et al issued unregistered sharesof the Company in violationofSection5 of the Securities Act. (See Securities and Exchange Commission v. S. Paul Kelley. et al., Civil ActionNo. 2:14-cv-2827) (D. N.J., filed May 5, 2013). It is DTC's position that such shares were not eligible for deposit atDTC for book entry services. Because all the Company's shares held by DTC are freely interchangeable, DTChas determined to implement the Global Lock. The Company said there wereno allegations made about anyimproprieties by GPRC, and believes DTC's actions are unfair and unnecessarily damaging to currentshareholders and the Company.
The Company said it is reviewing its options and, if there are any new developments with respect to this matter, it will inform shareholders.
Description ofGuanweiRecycling Corp.
Adhering to the highest "green" standards,GuanweiRecycling Corp. (the "Company") has generated rapid growthproducing recycled low density polyethylene (LDPE) from plastic waste procured mostly in Europe. The Companysells the recycled LDPE to more than 300 customers (including over 150 active recurring customers) in more thanten different industries in China. The Company is licensed by Chinese authorities and also has been issued aCompliance Certificate by TVRheinland, which issues certificates of approval forcertain plastics manufacturersthat meet Germany's strict environmental standards. This enables the Company to procure high quality plastic waste directly from Germany and other European countries with no middlemen, and permits highly economic production of the highest grades of LDPE. Additional information regardingGuanweiRecycling Corp. is availableatwww.guanweirecycling.com.
Information Regarding Forward-Looking Statements
Except for historical information contained herein, the statements in this press release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause ouractual results in future periods to differ materially from forecasted results. These risks and uncertainties include,among other things, product demand, market competition, and risks inherent in our operations. These and otherrisks are described in our filings with the U.S. Securities and Exchange Commission.
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