|By Marketwired .||
|December 4, 2013 09:39 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 12/04/13 -- Maple Leaf Green World Inc. (TSX VENTURE: MGW) ("Maple Leaf" or the "Corporation") announces that it has agreed to sell its wholly owned China Subsidiary, Inner Mongolia Maple Leaf Reforestation Co. Ltd. (the "Subsidiary"), which holds 100% of the rights and title to its Inner Mongolia Greenhouse, for 4 million Rmb (approximately Cdn $690,000). The sale is being made to a private group that is represented by a Canadian citizen based in Vancouver (the "Purchaser").
The Purchaser is involved in growing vegetables and flowers, coal mining and other green technology projects. They are looking for a long term partnership with a foreign green project focused public company, and as such, buying Maple Leaf's Greenhouse is their first step towards building a working relationship with Maple Leaf
The purchase and sale agreement was entered on November 29, 2013, and a deposit of Rmb 827,794 (approximately Cdn $143,000) was provided by the Purchaser via settlement of all the outstanding debt of the Subsidiary. Due to China's foreign currency control restrictions, the balance of the Rmb 3,172,206 (approximately Cdn $547,000) will be wire transferred to Maple Leaf's Canadian Bank account within 2 weeks time.
The decision by Maple Leaf to sell its Greenhouse is based on the following factors:
1. the continuous slump of the seedlings sales in the last couple years; 2. the poor geographical location of the Greenhouse has lead to infrastructure never being developed after 7 years of waiting and consequently no appreciation of the land value despite land prices in Inner Mongolia generally appreciating during this time; and 3. Given the difficult junior public company capital market conditions in Canada, the sale of the Greenhouse will give Maple Leaf much needed funds to pursue furthering its peat moss, Ellepots and soil enhancement business segments and will move time, resources and energy away from an unproductive asset.
According to the purchase and sale agreement, Maple Leaf will still provide technical support to the Purchaser including supplying peat moss and Ellepots, and may also participate in certain joint ventures with the Purchaser, if desired.
Upon completion of the sale of the Greenhouse Maple Leaf will concentrate its operational efforts and financial resources on its peat moss, Ellepots and soil enhancement business segments, as well as on seeking other near term profitable green projects or joint ventures with the Purchaser.
Maple Leaf further announces that it has decided to cancel, effective immediately, its collaboration agreement with China Light with respect to China Light's pig raising technology. Maple Leaf has made continuous requests to China Light to provide details regarding the pig raising tests and the ingredients in its pig raising formula, however China Light has refused.
This decision is consistent with Maple Leaf's objective of focusing its time and resources on its peat moss, Ellepot and soil enhancement business segments.
For further information regarding Maple Leaf Green World Inc., visit www.mlgreenworld.com.
About Maple Leaf Green World Inc.
Maple Leaf is a Canadian company that focuses in the environmental industry with 2 main operating arms:
1. Eco-Agriculture - it operates a large-scale nursery business in Inner Mongolia, China that is focused on growing value-added tree seedlings and nursery products that assist with anti-desertification. 2. Renewable Energy - it is undertaking to commence a Yellowhorn seedling and tree operation which would provide valuable Yellowhorn seeds and ultimately oil from such seeds for the manufacture of bio-diesel fuel and premium healthy cooking oil.
Maple Leaf is a wholly-owned foreign enterprise which allows the Corporation 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.
Neither the TSX Venture Exchange or its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts 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 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.