News
Maple Leaf Signs 2 Million RMB Fish Meal Distribution Agreement
(TSX-V: MPE)Last Close: December 2, 2009 - $0.115
Shares Issued: 61,586,627
Calgary, Alberta - December 02, 2009 - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Company") is pleased to announce that it's wholly owned Hunan Organic Fertilizer Plant has signed a distribution agreement with Mr. Wang Yonggui (the "Sales Agent") to sell a total of 2,000 tons of fish meal between December 10th, 2009 and December 31st, 2010.
Under the agreement:
- The sales agent will be responsible to sell 2,000 tons of fish meal during the 1 year term of the agreement;
- The fish meal will be sold to the sales agent for $154 Cdn (1,000 Yuan) per ton (including the transportation fees). The total revenue to Maple Leaf from this agreement will be approximately $310,000 Cdn (2,000,000 Rmb);
- Maple Leaf will receive 45% of the payment upon delivery to the Sales Agent and the balance after July, 2010;
- The Sales Agent will purchase at least 15 tons of fish meal from Maple Leaf each time he wish to make a purchase (exceptions can be made under some special circumstances);
- The first shipment of 30 tons will be delivered to the Sales Agent in December, 2009;
Raymond Lai, President and CEO of Maple Leaf comments, "Fish Meal sales have been a large part of our Hunan Organic Fertilizer Plant and have made significant contributions to the Company's revenue in 2009. We plan to continue to expand the fish meal operations in 2010 by securing additional sales and distribution agreements as such opportunities become available. The target will be to reach 10,000 tons, which is the plant's current production capacity."
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.