Sino Clean Energy Lowers FY Revenue Guidance to $125-142M vs $150-168M Prior Guidance
Sino Clean Energy Inc. (NASDAQ: SCEI) ("Sino Clean Energy," or the "Company"), a leading producer and distributor of coal-water slurry fuel ("CWSF") in China, today announced adjusted full year 2012 revenue guidance.
As disclosed in the Company's 8-K filing with the SEC on May 18, Sino Clean Energy was notified by local court authorities that its Dongguan facility was forced to suspend operations pending the outcome of a lawsuit filed against Yongchang Paper Industry Co. Ltd. ("Yongchang"). Yongchang is the entity from which the Company had purchased the Dongguan facility's land and factory building but from which the Company has yet to receive the land use right certificate per a previously agreed schedule. The Company is in the process of appealing the court order and intends to defend its contractual rights. In the meantime, Sino Clean Energy is actively seeking alternative production options and may lease additional facilities to serve its customers in the region.
Trading in Sino Clean Energy's shares on the Nasdaq Global Market ("NASDAQ") was halted on May 21, 2012 pending NASDAQ's request for additional information from the Company about the Dongguan facility. Company management and its legal counsel have been in close contact with NASDAQ and have been cooperating with NASDAQ's requests. The Company is diligently working to fully satisfy NASDAQ's requests with the expectation that upon satisfying such requests, trading can commence.
After assessing the probable impact of this interruption and the possibility of other means of production and sales in Dongguan and in other facility locations, Company management now expects fiscal year 2012 revenue of between $125 million and $142 million, down from previous guidance of between $150 million and $168 million. This new guidance assumes total sales volume of 1.1 million to 1.2 million metric tons of CWSF in 2012.
© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.