News
Maple Leaf Secures $3.2 Million in Revenue from Alfalfa Feedstock Operation
(TSX-V: MPE)Last Close: July 14, 2009 - $0.09
Shares Issued: 61,586,627
Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Company") is pleased to announce that it has signed a letter of intent regarding a distributorship agreement with Hebei Taoyuan Feedstock International Trading Co., Ltd. (“Hebei”) to sell 10,000 tons of alfalfa cake and stack on behalf of Maple Leaf between July, 2009 and July, 2010. The alfalfa cake and stack will be sold to Hebei for $322 Cdn (1900 Rmb) per ton initially, however this price may be adjusted upwards or downwards as mutually determined by Maple Leaf and Hebei based on prevailing market prices. Based on current pricing, total revenue from these sales will be approximately $3.2 million Cdn (19 million Rmb). Maple Leaf will receive payment for these shipments within 15 days of each delivery.
Raymond Lai, President & CEO of Maple Leaf comments, “As with the distributorship agreements that we recently signed with respect to our organic fertilizer operation, this arrangement will allow us to access part of the alfalfa market that would have otherwise been difficult to get business from. Although our alfalfa operation has only been a minor contributor to our revenues for the past few months, this will now change given our new relationship with Hebei. Securing this amount of sales from our alfalfa operation means that all three of our primary operations will now meaningfully contribute to our revenue stream. We are excited about ramping up our alfalfa operation.”
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.