News
Maple Leaf Plans Up To $1,000,000 of Private Placements
(TSX-V: MPE)Last Close: July 14, 2010 - $0.13
Shares Issued: 61,586,627
Maple Leaf Reforestation Inc. ("Maple Leaf") would like to report that its Board of Directors has approved two non-brokered private placements, each up to $500,000, for potential total proceeds of up to $1,000,000.
A private placement of convertible debentures is being offered, with a minimum debenture amount of $10,000 (the "Debenture Offering"). The debentures will bear interest at a rate of 12% per annum and will be payable on maturity, that being two years from the closing of the Debenture Offering (the "Maturity Date"). The debentures will be convertible at the option of the holder into common shares of Maple Leaf at a conversion price equal to $0.15 per common share during the initial twelve months following the closing of the Debenture Offering and at a conversion price of $0.20 per common share during the second twelve months following the closing of the Debenture Offering.
A private placement of Units is also being offered at $0.125 a unit, with each Unit consisting of one common share and one half common share purchase warrant (the "Unit Offering"). Each full common share purchase warrant will entitle the holder to purchase one common share at an exercise price of $0.22 for a period of two years from the date of issuance.
While the offerings are non-brokered, Maple Leaf may pay finder's fees to individuals who obtain subscriptions for the offerings. Maple Leaf intends to use the proceeds from the offerings to advance its various expansion opportunities and for general working capital. The offerings are subject to approval of the TSX Venture Exchange. Common shares issued upon conversion of the debentures will be subject to a four month hold period commencing from the date of such conversion. Common shares sold pursuant to the Unit Offering will be subject to a four month hold period commencing on the closing of the offering.
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating five environmental related projects in China:
- a large-scale forest nursery in Inner Mongolia which is focused on growing value-added tree seedlings and nursery products;
- an alfalfa feedstock operation that produced 10,000 tons in 2009 with great expansion potential and opportunity to build an alfalfa crop cake processing plant;
- a multi-faceted Xinjiang Yellowhorn tree project which will provide for the manufacture of bio-diesel fuel and cooking oil and complement the fabrication of the ever demanding nutritious alfalfa feedstock;
- an organic fertilizer plant in the Hunan Province which will produce environmentally friendly bio-organic fertilizer; and
- a Flexi-Pipe distribution network to serve the oil and gas industry and other renewable energy industries.
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) 769-9156
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.
Maple Leaf maintains a forward-looking statement database which is reviewed by management on a regular basis to ensure that no material change has occurred with respect to such forecasts. The Company will publicly disclose such material changes to its forward-looking statements as soon as they are known to management.