Last Close: March 16 - $0.20
Shares Issued: 62,186,627
CALGARY, March 16 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf" or the "Corporation") is pleased to announce that it has signed an exclusive Distribution Agreement for Yellowhorn seedlings (the "Agreement") with Unni Larsgaard Trust ("Unni"). Pursuant to the terms of the Agreement:
- Maple Leaf will supply Yellowhorn seedlings to Unni;
- Maple Leaf will not be permitted to supply Yellowhorn seedlings to
any other purchaser in the U.S.A. unless Unni declines such seedlings
- Unni will not be permitted to purchase Yellowhorn seedlings from any
other Chinese vendor or any other party that is acquiring Yellowhorn
seedlings from a Chinese vendor;
- Unni will purchase at least 10 million Yellowhorn seedlings from
Maple Leaf per 12-month period;
- The Agreement will be for a term of four years;
- Unni will not be permitted to terminate the Agreement unless Maple
Leaf becomes unable to supply Yellowhorn seedlings as required by
Unni. Maple Leaf will not be permitted to terminate the Agreement
unless Unni becomes unable to fulfill its obligations as distributor
under the Agreement; and
- Maple Leaf will issue to Unni 200,000 options to purchase common
shares at the Market Price at the time that Unni's first purchase
order is placed, which must include a reasonable deposit as agreed
upon by the parties. Half of the 200,000 options will vest
immediately upon issuance and the other half will vest when Unni has
purchased 10 million Yellowhorn seedlings.
Since execution of the Agreement, Unni has purchased 1,000 Yellowhorn seedlings and 3 kilograms of Yellowhorn seeds, which are presently being prepared for shipment by Maple Leaf from China to the U.S.A. This initial order will provide Unni with a product sample to assess prior to placing more substantial orders. Presently Yellowhorn seedlings can sell for as much as $3.20 per seedling in the U.S.A.
Raymond Lai, President and CEO of Maple Leaf comments, "Being contacted by Unni to act as a provider of Yellowhorn seedlings to U.S. entities is very exciting as it represents our first footprint in the North American bio-diesel industry. Our new relationship with Unni offers a fantastic opportunity for us to realize immediate and meaningful revenue and cash flow."
Unni is a Florida based group that acts as a consultant to large agricultural entities and individual farmers that are moving towards producing bio-fuel crops. Unni assists such entities with writing feasibility studies, grant applications and U.S. Department of Agriculture program package applications. Unni's clients include orange growers whose trees are dying from Huan Long Bing, an un-curable Asian citrus disease, who are looking to move to bio-fuel production, investors whom are trying to start bio-fuel plantations in warm weather climates and Indian tribes in the Castor Oil Belt, such as Texas and Oklahoma.
Maple Leaf would also like to report that its Board of Directors has approved a non-brokered private placement of $150,000 of units at $0.15 per unit. Each unit consists of one common share and one common share purchase warrant, with each common share purchase warrant entitling the holder to purchase one common share at an exercise price of $0.25 per common share for a period of two years from the date of issuance.
The private placement is being fully subscribed for by Mr. Raymond Lai and his wife, Mrs. Amanda Lai. No finder's fees will be paid in association with the private placement.
Maple Leaf intends to use the proceeds from the private placement for head office expenses.
The private placement is subject to approval of the TSX Venture Exchange. Common shares sold under the financing will be subject to a four-month hold period.
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating four environmental related projects in China:
1. a large-scale forest nursery in Inner Mongolia which is focused on
growing value-added tree seedlings and alfalfa feedstock alongside
landscaping and nursery products;
2. 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;
3. an organic fertilizer plant in the Hunan Province which will produce
environmentally friendly bio-organic fertilizer; and
4. a Flexi-Pipe distribution network to serve the oil and gas industry
and other renewable energy industries.
Maple Leaf is a wholly-owned foreign enterprise which allows Maple Leaf to control 100% of the direction and operations of the company in China while permitting profits from operations to flow back to Canada.
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.
SOURCE MAPLE LEAF REFORESTATION INC.
For further information: For further information: regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond Lai, Chairman, President & CEO, Tel: (403) 668-7560, Fax: (403) 250-2534, E-mail: email@example.com