(TSX-V: MPE)
Shares Issued: 47,294,227
Last Close: 04-07-2007 $0.30
CALGARY, July 5 /CNW/ - Maple Leaf Reforestation Inc. is pleased to announce the company has signed a two years sales contract for $28 million RMB (approximately $4 million Canadian) with Liangcheng Dadi Forestry Co. Ltd., PRC, to purchase a variety of the company's tree seedlings.
Under the sales contract, Liangcheng Dadi, located in Liangcheng city, Inter Mongolia, a local privately owned company in the forestry business, will start purchasing in September 2007 through to September 2009, approximately 26.9 million seedlings in 5 separate deliveries. In September, 2007, the 5.38 million seedlings purchased will include a variety of existing seedlings currently under cultivation within the company's nursery facilities. The seedlings sold are varieties of Colorado spruce (1.69 million); Chinese pine (615,000), Jack pine (760,000), Scots pine (530,000), Northern China larch (225,000) and Colorado Kibab spruce (1.56 million). The total value of each delivery is approximately $5.65 million RMB (approximately $810,000 Canadian). Liangcheng Dadi may increase the quantity of the subsequent deliveries in the early spring of 2008, if it is satisfied with the survival and growth rate of the 1st delivery, and Maple Leaf will accordingly give Liangcheng Dadi a discount up to 5% on the contract price for the subsequent deliveries. Further, Liangcheng Dadi is required to make cash payment to the company's bank account prior to the shipment of each delivery of seedlings.
Raymond Lai, chief executive office and president of Maple Leaf, is very pleased that large sales contracts start coming in at a steady rate, totaling almost $5 million Canadian, so far. A big progress in 2 months time after the new management team takes over.
Maple Leaf's primary mission is to provide top quality, value added nursery seedlings and modern Canadian tree growing technology to assist China in solving its desertification problems. Maple Leaf currently has over 6,000,000 various types of seedlings under cultivation in our 110,000 square foot greenhouse.
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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 the 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 the 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 therefrom. 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.