News
Maple Leaf Signs Letter of Intent Regarding Whitebark Pine Technology
(TSX-V: MPE)Last Close: August 11, 2009 - $0.11
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 with Astro-Wood Bio-Engineering Development Co. Ltd. (“Astro-Wood”) of Shanxi, China to jointly develop Whitebark Pine trees (the “LOI”).
Astro-Wood is a national company specialized in seedling cultivation, landscaping, research and development for new species of agro-forestry, fungi nursing and livestock breeding. Astro-Wood has a registered capital of approximately $25 million Cdn (1.6 billion Rmb) and its total assets are valued at approximately $47 million Cdn (3 billion Rmb).
The Whitebark Pine (Pine Bungeana) is a very precious and popular pine species. It is known to grow under very harsh conditions and is thus used extensively for landscaping and reforesting in Northern China. The seedling for this type of pine is very difficult to cultivate, normally taking three years to grow to the height of 20 cm. Maple Leaf’s greenhouse has been able to develop a technology however, that allows for the development of Whitebark Pine seedlings to 20 cm height in just seven months (the “Technology”). Maple Leaf has already grown approximately 25,000 seedlings for approximately 6 months using the Technology and the majority of these seedlings have grown to approximately 20 cm height. Based on the success of this experimental sample, Maple Leaf and Astro-Wood have agreed to sign the LOI to jointly develop Whitebark Pine trees under the following conditions:
- Maple Leaf will contribute the Technology and its facilities towards the development of Whitebark Pine trees;
- Astro-Wood will contribute its capital and plantation facilities towards the development of Whitebark Pine trees;
- Astro-Wood agrees to purchase a minimum of 5 million Whitebark Pine seedlings per year from Maple Leaf upon the successful completion of the experimental sample and will place all of its Whitebark Pine seedling orders with Maple Leaf once Maple Leaf is able to meet Astro-Wood’s needs;
- An application will be submitted to patent the Technology and if granted will be jointly owned by Astro-Wood and Maple Leaf; and
- The future application of the Technology will be developed and funded by Astro-Wood and Maple Leaf will handle the cultivation of the seedlings.
Raymond Lai, President and CEO of Maple Leaf, who recently traveled to Shanxi, China to attend the signing of the Letter of Intent between Astro-Wood and Maple Leaf, comments “We are extremely pleased with the progress made by the Inner Mongolia Operation. If this Letter of Intent turns into contract orders, hopefully by September, our seedling orders will exceed our greenhouse capacity. As a result we will inevitably need to access additional greenhouse space next year, which we believe is a very significant operational achievement. We are very excited about partnering with Astro-Wood given the vast foot-print that it has in China’s agricultural industry.”
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.