Business
Maple Leaf Acquires Yellowhorn Plantation Assets Valued at CDN $2 Million
TSX-V: MPE Last Close : July 29, 2011 - $0.075 Shares Issued : 80,682,875 CALGAR...
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\n\n\nTSX-V: MPE \n\n\nLast Close: July 29, 2011 - $0.075Shares Issued: 80,682,875\n\n\nCALGARY, Aug. 2, 2011 /CNW/ - Maple Leaf Reforestation Inc. (\"Maple\n Leaf\") is pleased to announce that further to its news release dated\n May 30, 2011, it has signed an agreement to acquire assets from KS\n Ecology (Canada) Inc. (\"KS\"), a Vancouver, B.C. based Yellowhorn\n plantation company (the \"Agreement\") with operations in China.\n\n\nPursuant to the agreement Maple Leaf will acquire three Yellowhorn\n plantations and nurseries in China, with associated assets, two located\n in the city of JiaoZuo, Henan Province (80% interest) and one in the\n city of Beijing, China (100% interest) (the \"Assets\"). The additional\n 20% interest in the Henan assets is owned by the on-site operator of\n the Assets, who is party to a joint-venture arrangement with KS. The\n Agreement gives Maple Leaf the ability to re-negotiate the\n joint-venture agreement on the Henan assets or seek to buy-out the 20%\n partner.\n\n\nThe Assets\n\nHenan Assets\n\n\nBeijing Assets\n\n\n\n2 million 1-year old Yellowhorn trees\n\n\n600,000 2-year old Yellowhorn trees\n\n\n40,000 fully grown Yellowhorn trees\n\n\n6 million Pistacia Chinensis trees\n\n\napproximately 875 acres (5,300 mu) of plantation lands\n\n\napproximately 100 acres (600 mu) of nursery space\n\n\na Yellowhorn Forestry Research Institute\n\n\n2 office spaces\n\n\n\n\n22,000 fully grown Yellowhorn trees\n\n\napproximately 50 acres (310 mu) of plantation lands\n\n\n\nAgreement Terms\n\n\nThe Assets are being purchased at a deemed value of Cdn $2,019,600 (RMB\n 13,733,200) (the \"Purchase Price\"). The Purchase Price will be\n satisfied by Maple Leaf by issuing from its treasury 13,464,000 common\n shares at a deemed value of $0.15 per share (the \"Shares\"). Maple Leaf\n will be required to issue 8,976,000 of the Shares upon closing and will\n withhold 4,488,000 of the Shares until the date that is one year from\n closing. Maple Leaf will only be required to issue the 4,488,000 Shares\n if it is satisfied with the performance of the Assets, however it will\n not be permitted to withhold the second tranche of the Shares based on\n commercially unreasonable expectations regarding the performance of the\n Assets.\n\n\nDue Diligence Period\n\n\nThe latest anticipated closing date for the Agreement...