Esplanade Capital Issues Open Letter to the Board of New Energy Exchange Limited Urging Company to Distribute Shares of 686 HK worth ~US$18.50 per share

BOSTON, Aug. 28, 2017 (GLOBE NEWSWIRE) -- Esplanade Capital LLC, a significant shareholder of New Energy Exchange Limited (OTC:EBODF), announced today that it has issued an open letter to the Board of Directors (the “Board”) urging the Company to pursue shareholder value maximizing actions, namely distributing the Company’s 320,683,070 shares of Panda Green Energy Group Limited (HKSE:686) worth ~ US$42 million, equivalent to ~US$18.50 per share of EBODF versus the current market price of US$1.60 per share. The full text of the letter follows:

August 28, 2017

New Energy Exchange Limited
Board of Directors
Shun Tak Centre West Tower
Unit 1407
168-200 Connaught Road
Central, Hong Kong

Dear Members of the Board of Directors (the “Board”):

Esplanade Capital LLC (“Esplanade” or “We”) urges New Energy Exchange Limited (the “Company”, “NEX”, or “EBODF”) to pursue shareholder value maximizing actions, namely distributing the Company’s 320,683,070 shares of Panda Green Energy Group Limited (686 HK) (f.k.a. United Photovoltaics Group Limited) worth ~US$42 million, equivalent to ~US$18.50 per share of EBODF versus the current market price of US$1.60 per share.

As background, Esplanade was founded in 1999 and has been investing in the solar sector since 2004. Through the management of Esplanade Capital Partners I LLC and Esplanade Capital Electron Partners LP, We and our affiliates have maintained a significant position in EBODF since 2013.

Discussions with the Company before and after Esplanade’s April 16, 2017 open letter to the Board have provided a more robust appreciation for its current business operations: the provision of value-added transaction services on the buy- and sell-side in the booming Chinese downstream solar market and solar power plant asset ownership. However, these discussions have also provided an unsatisfactory rationale for inaction in terms of publicly maximizing shareholder value.

After privately and publicly urging management to maximize long-term shareholder value by re-registering with the SEC and filing updated financials, we believe the next best alternative entails distributing the Company’s 320,683,070 shares of Panda Green Energy Group Limited (686 HK), validated through Stock Exchange of Hong Kong Limited filings as of June 15, 2017, worth ~US$42 million, equivalent to ~US$18.50 per share of EBODF versus the current market price of US$1.60 per share.

This distribution rewards all shareholders of the Company by providing a shareholder return without interrupting the Company’s operations, strategy, or cash flow.

Esplanade welcomes the opportunity to continue our discussions with the Company to ensure that shareholder value is maximized.

Regards,

Shawn W. Kravetz
President

cc: Alan Li Shan Yuan (electronically), Maggie Qiu Ping (electronically), Lu Zhenwei (electronically), Li Hong (electronically)

ABOUT ESPLANADE CAPITAL LLC
Esplanade Capital is a Boston based investment management firm founded in 1999 to manage capital for a small number of like-minded families, private investors, and institutions

CONTACT
Esplanade Capital LLC
www.esplanadecapital.com
(617) 502-9930

Source:Esplanade Capital