Business
Maple Leaf signs Yellowhorn seedling distribution agreement with U.S. entity
Maple Leaf signs Yellowhorn seedling distribution agreement with U.S. entity
About this update from Maple Leaf Green World, Inc.
[{"type":"text","content":"\n\n\n\nCALGARY, Mar. 16, 2010 (Canada NewsWire Group) -- /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 toany other purchaser in the U.S.A. unless Unni declines such seedlingsin writing;- Unni will not be permitted to purchase Yellowhorn seedlings from anyother Chinese vendor or any other party that is acquiring Yellowhornseedlings from a Chinese vendor;- Unni will purchase at least 10 million Yellowhorn seedlings fromMaple 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 MapleLeaf becomes unable to supply Yellowhorn seedlings as required byUnni. Maple Leaf will not be permitted to terminate the Agreementunless Unni becomes unable to fulfill its obligations as distributorunder the Agreement; and- Maple Leaf will issue to Unni 200,000 options to purchase commonshares at the Market Price at the time that Unni's first purchaseorder is placed, which must include a reasonable deposit as agreedupon by the parties. Half of the 200,000 options will vestimmediately upon issuance and the other half will vest when Unni haspurchased 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.\"About UnniUnni is a Florida based group that acts as a consultant to large agricultural e...