VANCOUVER, Oct. 6 /CNW/ - IND DairyTech Limited (TSXV:IND, formerly China One Corporation) ("IND" or "the Company") today announced that its Chinese subsidiary received two one-year term loans from China Construction Bank totalling RMB 100 million (approximately $15.9 million). Both loans bear annual interest of 105% of the Chinese prime rate (currently 5.58%) and are renewable at the end of the one-year term. One of the loans for RMB 30 million (approximately $4.8 million) is secured with the Company's Qingdao farm, and the other loan for RMB 70 million (approximately $11.1 million) is secured by certain buildings of and a credit guarantee from a private company controlled by Jesse Zhu, the Chief Executive Officer and majority shareholder of the Company. The proceeds of the loans will be used to fund working capital, primarily towards increasing the milking cattle herds of the Company.
ABOUT IND DAIRYTECH LIMITED
IND, through its operating subsidiaries, is an emerging raw milk producer in China that is seeking to become a leading provider of high quality raw milk to the Chinese dairy industry. To meet China's increasing demand for dairy products, the Company is using Canadian cattle genetics and North American farming practices to establish and develop its dairy herd in China. The Company plans to develop its herd in China through the use of advanced breeding techniques employing Canadian Holstein embryos that it intends to use to impregnate surrogate cows. These embryos have been created through in vitro fertilization using sexed semen to achieve an approximate 90% female birth rate. The use of these advanced breeding techniques is expected to allow the Company to rapidly expand its herd. The use of Canadian Holstein embryos also provides a practical solution to China's ban on the import of live Canadian cattle.
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SOURCE IND DAIRYTECH LIMITED
For further information: For further information: James Xiang, Chief Financial Officer, IND DairyTech Limited, (416) 886-1261, email@example.com