(TSX-V: MPE) Last Close: March 27, 2009 - $0.11 Shares Issued: 56,511,127
CALGARY, March 30 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to announce the signing of three contracts during the month of March for a total value of Cdn $553,700 (3,045,000 Rmb):
1. Valued at Cdn $409,100 (2,250,000 Rmb), the Inner Mongolia Forestry
Department ("IMFD"), which is responsible for supplying seedlings to
the entire autonomous region of Inner Mongolia, will supply to Maple
Leaf 4 million Caragana Intermedia ("Ningtiao") and 1 million
Hedysarum Mongolicum Turcz ("Yangchai"). Maple Leaf will cultivate
these seedlings using its Canadian technology and then deliver them to
the various local governments in the autonomous region starting in
September 2009. Maple Leaf has received a Cdn $18,200 (100,000 Rmb)
deposit with respect to this arrangement. IMFD has requested that
Maple Leaf cultivate 20 million seedlings annually on its behalf,
however Maple Leaf has decided to treat this 5 million seedling order
as a 'test run' before it commits to the larger arrangement. Maple
Leaf expects that cultivating 20 million seedlings annually for IMFD
would result in annual revenue of Cdn $1.6 million (9 million Rmb).
2. Valued at Cdn $76,400 (420,000 Rmb), Henan Village in Huhehaote
(Hohhot) City, Inner Mongolia has purchased 200,000 Larch seedlings,
100,000 Pine seedlings, 250,000 Scotch Pine seedlings and 150,000 Blue
Spruce seedlings. Maple Leaf has received a Cdn $1,200 (6,600 Rmb)
deposit for this order and will receive the remaining Cdn $75,200
(413,000 Rmb) upon delivery of the seedlings, which is expected to
begin shortly after Spring break-up.
3. Valued at Cdn $68,200 (375,000 Rmb), Zhouquan Village in Datong City,
Shanxi Province has purchased 500,000 Blue Spruce seedlings and 50,000
Jack Pine seedlings. Maple Leaf has received a Cdn $2,700 (14,850)
deposit for this order and will receive the remaining Cdn $65,500
(360,250 Rmb) upon delivery of the seedlings, which is expected to
begin shortly after Spring break-up.
Mr. Raymond Lai, President & CEO of Maple Leaf stated: "I am very excited
about these new contracts and I commend our Greenhouse staff for beginning
this year's selling efforts with such great success."
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 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 has stated that it will be negotiating a larger cultivation agreement with IMFD for the cultivation of 20 million seedlings annually if it is able to successfully cultivate and deliver the 5 million seedlings that have been contracted for. There is no guarantee that this larger agreement will be entered as no formal commitment has been made by IMFD or Maple Leaf for the cultivation of 20 million seedlings annually. The completion and entering of this larger agreement depends on a number of uncertain factors, including Maple Leaf successfully cultivating the 5 million seedlings on behalf of IMFD and IMFD desiring to further contract with Maple Leaf for the cultivation of additional seedlings.
Maple Leaf has identified that it will receive certain amounts of funds upon delivery of seedlings to the parties that it has contracted with. It is not certain that Maple Leaf will ever receive these amounts, as the contracting parties may wish to lose their deposit and not carry-out their obligations pursuant to the relevant agreement. As such, it is only guaranteed that Maple Leaf will receive the deposit amounts that are set-out above.
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.