Last Close: January 27, 2011 - $0.125
Shares Issued: 72,458,502
CALGARY, Jan. 28 /CNW/ - Maple Leaf Reforestation Inc (TSX-V-MPE) (the
"Company" or "Maple Leaf") would like to provide the following updates
on its various proposed projects and potential financing arrangements:
Municipal Solid Waste Joint Venture
Maple Leaf and its joint venture partner C.F. Lacey & Associates
("Lacey") are in negotiations with three technology providers to
operate the MSW project. It is anticipated that a final technology
service agreement will be entered in the near term. In addition, Lacey
is in the final stages of securing the initial $300,000 required to
complete the preliminary work for the MSW project. Finally, Maple
Leaf's and Lacey's personnel will be visiting Inner Mongolia, China
early in March to negotiate all the necessary contracts and permits
with the government and to conduct a preliminary lab test of the chosen
Yellowhorn Seed & Seedling Orders
Maple Leaf's Yellowhorn Distribution Agent in the U.S., Unni Larsgaard
Trust ("Unni") has reported to the Company that it has submitted six
Yellowhorn subsidy applications pursuant to the Biomass Crop Assistance
Program ("BCAP"). Unni is hopeful that one application in particular
will be approved shortly which was for approximately 1 million
Yellowhorn seedlings. Based on current market prices, each Yellowhorn
seedling would be sold by Maple Leaf to Unni for approximately US$1.60
and Yellowhorn seeds would be sold for approximately US$65 per
MOU with Biodis
Maple Leaf has voluntarily allowed its Memorandum of Understanding with
Biodis Engineering Ireland Limited ("Biodis") to expire as of December
31, 2010. However, Biodis continues to be in discussions with the
Company regarding various bio-fuel related project opportunities
including Yellowhorn seedling and seed purchases.
Project Development Financing
Maple Leaf continues to diligently pursue various financing arrangements
so as to be able to undertake operational expansion and
diversification. Specifically, Maple Leaf has received an extension of
its previous conditional offer for a $20 million loan from APEC Logic
Investments Pty Limited until February 28, 2011. Maple Leaf continues
to assess its ability to meet the conditions of the loan offer.
In addition, the Winnipeg-based financing group that visited Maple
Leaf's greenhouse operation in November continues to be in discussions
with various potential lenders and has indicated that it should have a
better sense of these lenders' level of interest by the end of January.
Furthermore, Maple Leaf has also engaged several other groups to assist
the Company with obtaining financing and some of the groups' clients
have expressed interest and are in the process of conducting a more
thorough due diligence review on the Company.
Strategic Equity Financing
Maple Leaf's Board of Directors has approved a private placement with a
strategic group of investors (the "Placement"). The Placement will
consist of up 7,647,059 units at a price of $0.085 per unit (the
"Units") for gross proceeds of approximately $650,000. Each Unit will
be comprised of one common share and one common share purchase warrant
exercisable into one common share at a price of $0.125 for a period of
two years from the date of closing of the Placement.
While the Placement is 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 Placement to expand capacity at
its Inner Mongolia Greenhouse operation, permitting it to enter pending
supply contracts with the Inner Mongolia government, and for general
The Placement is subject to approval of the TSX Venture Exchange. Common
shares and warrants issued pursuant to the Placement will be subject to
a four month hold period commencing from the date of closing of the
Raymond Lai, Maple Leaf's President & CEO comments, "We are very excited
about having this group of investors become shareholders of Maple
Leaf. We have been in discussions with this group for over a year now
and are pleased that they have decided to support Maple Leaf, at what I
believe is the beginning of an exciting period of Maple Leaf's
history. We are also pleased about the interest that has been
expressed by various lenders and we will continue to diligently work
with these potential lenders and hopefully be able to finalize a
financing arrangement in the near term so that we can move forward with
our project diversification and expansion strategies."
Issuance of Incentive Stock Options
Maple Leaf also announces that, pursuant to its "rolling" stock option
plan and subject to TSX Venture approval, the Company has granted
450,000 incentive stock options to an employee (200,000) and a
consultant (250,000) to purchase common shares in the capital stock of
Such options are for a term of three years, with an exercise price of
$0.125 per common share. The options shall vest partially upon grant
and then in tranches during the 6 months following the date of grant.
The options and any stock resulting from the exercise thereof are
subject to a four-month hold period from the date of grant.
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating various projects in China.
Maple Leaf is a wholly-owned foreign enterprise which allows the
Company 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.
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: +1 (403) 668-7560
Fax: +1 (403) 250-2534