(TSX-V: MPE) Last Close: September 8, 2008 - $0.235 Shares Issued: 56,482,327
TORONTO, Sept. 9 /CNW/ - Maple Leaf Reforestation Inc.(TSX-V-MPE) (the "Company" or "Maple Leaf") is pleased to announce that it has signed an Exclusive Agreement with Petro-Tech China Ltd. (the "Master Distributor") permitting it to exclusively sell and distribute 'Thermoflex' Coiled Tubings in China. 'Thermoflex' coiled tubings are produced by PolyFlow Inc, (the "Manufacturer"), headquartered in Pennsylvania, USA, which is a leading manufacturer of proprietary Polymer coiled tubings which are used by the oil and gas, and other industries.
Under the Agreement, the "Manufacturer", through the "Master Distributor", has granted the Company an Exclusive License to market, distribute and install 'Thermoflex' coiled tubings throughout China. The Exclusive Agreement is for an initial term of 12 months, however it will be renewable on an annual basis during the first 3 years (subject to satisfactory sales performance). Pursuant to the Exclusive Agreement the Company is required to pay a $75,000 USD deposit which will be applied towards the cost of the purchase orders made by the Company once $2,000,000 USD in purchase orders is reached.
Casey Chan, a director of Maple Leaf is currently heading this initiative for the Company. Mr Chan has prior experience in dealing with China based oil & gas equipment manufacturers and will help lay the groundwork for a successful product launch. In addition to the hiring of sales and technical personnel who have experience in the Chinese energy and mining sectors, the Company is currently negotiating the services of a senior project manager with extensive connections and experiences in China's oil and gas industry to eventually take the lead on this project.
According to the Energy Information Administration (a U.S. Government Agency), China is the second largest consumer of energy after the USA. Energy consumption since 1991, grew at a compounded rate of 10% and is projected to continue growing at a rate of 5% per annum through 2030, almost twice the global growth rate. There is continued strong market demand for energy throughout China. The Chinese government is especially supportive of new products and technologies designed to increase the efficiency of the energy industry and decrease environmental damage caused by energy production and consumption.
Mr Raymond Lai, President & CEO of Maple Leaf Reforestation Inc. notes that "The rising costs of traditional steel oil and gas pipe, and supply problems to the Chinese oil and gas industry equate to Maple Leaf being in an ideal position to market and install the Polyflow product line in China. As Polyflow's Exclusive Distributor in China, Maple Leaf will be the only company in that region in a position to offer a proven, lightweight, non-corrosive and cost effective steel pipeline alternative to Chinese oil & gas companies. Given the combination of Maple Leaf's geographic knowledge, contact base and operating expertise in China, we are optimistic about the marketing and installation potential throughout the region."
PolyFlow Inc.
PolyFlow Inc. (www.polyflowinc.com) is a leading manufacturer of Polymer coiled tubing products. Polyflow has developed a full range of technologically advanced Polymer products using proprietary production technology and materials.
Mr. Serge Bonnet, Polyflow's chief representative for Mexico, Canada and Asia comments, "We have experienced astronomical growth in demand and interest since our first overseas launch of 'Thermoflex' products in Mexico in 2006. However, we believe China is the single largest global growth opportunity for 'Thermoflex' products, and we have been actively and eagerly seeking the best way to enter the Chinese market. While we plan to gear our initial efforts in the oil & gas sector, where Maple Leaf has well established, grass root connections through their related environmental projects, we believe that 'Thermoflex' products are well positioned to penetrate other sectors in a relatively short period of time. We are capable of manufacturing and supplying integrated solutions to a broad range of industries in China that require high-quality corrosion resistant products, including power; chemical; municipal waste water; pulp and paper applications that we and our affiliates are now providing throughout North America.
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating a large-scale forest nursery whose primary focus is growing value- added tree seedlings and alfalfa feedstock alongside landscaping and nursery products in China. In addition, the multi-faceted Xinjiang Yellowhorn tree project will provide for the manufacture of biodiesel fuel. Reforestation has been identified as a critical strategy to help manage China's troubling environmental issues, namely pollution and desertification. Maple Leaf currently has over 6 million varieties of seedlings under cultivation at its nursery facility that includes a 110,000-square foot greenhouse located in Liang Cheng, Inner Mongolia, China.
Maple Leaf is a wholly-owned foreign enterprise ("WOFE"), which allows Maple Leaf 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.
For further information regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com.
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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. Subject to applicable law, Maple Leaf disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
All forward-looking statements contained in this document are expressly qualified by this cautionary statement. Further information about the factors affecting forward-looking statements is available in other disclosure documents of Maple Leaf which have been filed with Canadian provincial securities commissions and are available on www.sedar.com.