News
Maple Leaf Announces Contracts Totalling CDN $553,700 for its Greenhouse Operations
(TSX-V: MPE)Last Close: March 27, 2009 - $0.1
Shares Issued: 56,511,127
Maple Leaf Reforestation Inc. (“Maple Leaf”) is pleased to announce the signing of three contracts during the month of March for a total value of Cdn $553,700 (3,045,000 Rmb):
- Valued at Cdn $409,100 (2,250,000 Rmb), the Inner Mongolia Forestry Department (“IMFD”), which is responsible for supplying seedlings to the entire autonomous region of Inner Mongolia, will supply to Maple Leaf 4 million Caragana Intermedia (“Ningtiao”) and 1 million Hedysarum Mongolicum Turcz (“Yangchai”). Maple Leaf will cultivate these seedlings using its Canadian technology and then deliver them to the various local governments in the autonomous region starting in September 2009. Maple Leaf has received a Cdn $18,200 (100,000 Rmb) deposit with respect to this arrangement. IMFD has requested that Maple Leaf cultivate 20 million seedlings annually on its behalf, however Maple Leaf has decided to treat this 5 million seedling order as a ‘test run’ before it commits to this larger arrangement. Maple Leaf expects that cultivating 20 million seedlings annually for IMFD would result in annual revenue of Cdn $1.6 million (9 million Rmb).
- Valued at Cdn $76,400 (420,000 Rmb), Henan Village in Huhehaote (Hohhot) City, Inner Mongolia has purchased 200,000 Larch seedlings, 100,000 Pine seedlings, 250,000 Scotch Pine seedlings and 150,000 Blue Spruce seedlings. Maple Leaf has received a Cdn $1,200 (6,600 Rmb) deposit for this order and will receive the remaining Cdn $75,200 (413,000 Rmb) upon delivery of the seedlings, which is expected to begin shortly after Spring break-up.
- Valued at Cdn $68,200 (375,000 Rmb), Zhouquan Village in Datong City, Shanxi Province has purchased 500,000 Blue Spruce seedlings and 50,000 Jack Pine seedlings. Maple Leaf has received a Cdn $2,700 (14,850) deposit for this order and will receive the remaining Cdn $65,500 (360,250 Rmb) upon delivery of the seedlings, which is expected to begin shortly after Spring break-up.
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating a large-scale forest nursery whose primary focus is growing value- added tree seedlings and alfalfa feedstock alongside landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel. Reforestation has been identified as a critical strategy to help manage China’s troubling environmental issues, namely pollution and desertification. Maple Leaf currently has over 6 million varieties of seedlings under cultivation at its nursery facility that includes a 110,000-square foot greenhouse located in Liang Cheng, Inner Mongolia, China.
Maple Leaf is a wholly-owned foreign enterprise ("WOFE"), which allows Maple Leaf to control 100% of the direction and operations of the company in China while permitting the cash generated from operations in China to flow back to Canada.
For further information regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact:
Maple Leaf Reforestation Inc.
Raymond Lai, Chairman, President & CEO
Tel: +1 (403) 668-7560 Fax: +1 (403) 250-2534
E-mail: rlai@mlreforestation.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Certain statements in this news release including (i) statements that may contain words such as "anticipate", "could", "expect", "seek", "may” "intend", "will", "believe", "should", "project", "forecast", "plan" and similar expressions, including the negatives thereof, (ii) statements that are based on current expectations and estimates about the markets in which Maple Leaf operates and (iii) statements of belief, intentions and expectations about developments, results and events that will or may occur in the future, constitute "forward-looking statements" and are based on certain assumptions and analysis made by Maple Leaf. Forward-looking statements in this news release include, but are not limited to, statements with respect to future capital expenditures, including the amount, nature and timing thereof; other development trends within the China's seedling industry; business strategy; expansion and growth of Maple Leaf's business and operations and other such matters. Such forward-looking statements are subject to important risks and uncertainties, which are difficult to predict and that may affect Maple Leaf's operations, including, but are not limited to: the impact of general economic conditions; industry conditions; government and regulatory developments; seedling product supply and demand; competition; and Maple Leaf's ability to attract and retain qualified personnel. Maple Leaf's actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do transpire or occur, what benefits Maple Leaf will derive there from. Subject to applicable law, Maple Leaf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in other disclosure documents of Maple Leaf which have been filed with Canadian provincial securities commissions and are available on www.sedar.com.