Jul. 9, 2009 (Baystreet.ca) --
CALGARY -- Maple Leaf Reforestation Inc. (TSX.V: MPE) is pleased to announce that it has signed distribution agreements with five sales agents to sell a total of 1,000 tons of fish meal per month starting July, 2009.
Pursuant to the distributorship agreements, the sales agents will be responsible to sell 1000 tons of fish meal per month in three different regions of Hunan Province. Each agent will first be engaged on a two month trial basis. If any agent fails to meet its particular sales quota, the distribution agreement with that agent will be terminated after the two month trial period. The first 1,000 tons will be delivered to the agents during July, 2009. The fish meal will be sold to the agents for $448 Cdn (2,600 Rmb) per ton. The total revenue from these agreements will be $448,000 Cdn (2,600,000 Rmb) per month. Maple Leaf will receive 60% of the payment upon delivery to the agents and the balance within 90 days of delivery.
Raymond Lai, President & CEO of Maple Leaf comments, "These distribution agreements will allow us to access three regions of Hunan Province that we otherwise would have had difficulty securing fish meal sales in. This new revenue will greatly improve our ability to ramp up the Organic Fertilizer Operation. We hope that this sales structure will prove to be very beneficial in terms of expanding the breadth of our sales ability. Depending on the success of this sales structure we may further utilize it to tap other regions in Hunan Province and other regions of China. We may also increase the tonnage sold to the agents in these three regions if their sales efforts are successful and greater demand exists in these regions."
About Maple Leaf Reforestation Inc.
Maple Leaf is a Canadian company operating four environmental related projects in China:
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
<<
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.
>>
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 may utilize the sales structure discussed in this news release in other regions of Hunan Province and/or other regions of China and also that it may increase the tonnage of fish meal sold to the agents discussed in this news release. There is no guarantee that either of these statements will come true as their occurrence is solely dependent on the success of this first attempt at utilizing the sales structure.
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.
regarding Maple Leaf Reforestation Inc., visit www.mlreforestation.com or contact: Maple Leaf Reforestation Inc., Raymond Lai, Chairman, President & CEO, Tel: (403) 668-7560, Fax: (403) 250-2534, E-mail: rlai@mlreforestation.com