(TSX-V: MPE)
Shares Issued: 47,184,227
Last Close: 07-16-2007 $0.40
CALGARY, July 17 /CNW/ - Maple Leaf Reforestation Inc. ("Maple Leaf") is pleased to announce that it has signed a 6 months sales contract with Shaanxi Funong Alfalfa Feeds Co. Ltd., PRC ("Shaanxi Funong"), to purchase a variety of Maple Leaf's tree seedlings for $10 million RMB (approximately $1.5 million Canadian). Shaanxi Funong is located in Funong city, Shaanxi, and is a local privately owned company in the feed business.
Under the sales contract, Shaanxi Funong will purchase approximately 7.74 million seedlings in 3 separate deliveries beginning in September 2007 through to February 2008. The 7.74 million seedlings purchased will include a variety of existing seedlings currently under cultivation within Maple Leaf's nursery facilities. The seedlings sold are varieties of Colorado Spruce (5.25 million); White Pine (98,000), White Spruce (100,000), Jack Pine (1 million), Chinese Pine (200,000), Scots Pine (610,000), Northern China Larch (325,000), Norway Spruce (10,000), Red Pine (80,000) and Red Maple (75,000). The total value of each delivery will be approximately $3.5 million RMB (approximately $500,000 Canadian), and Shaanxi Funong is required to make a cash payment to Maple Leaf prior to the shipment of each delivery of seedlings.
Raymond Lai, President and Chief Executive Officer of Maple Leaf, is very pleased that large sales contracts are coming in at a steady rate, with almost $6.5 million Canadian under contract thus far. Maple Leaf's new management team is quite confident that increased sales will utilize Maple Leaf's greenhouse to its full capacity.
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 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 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.