GreenStar Provides Update on Beichen Acquisition and Negotiations with Canadian Distributor
07 Abril 2014 - 8:00AM
Marketwired
GreenStar Provides Update on Beichen Acquisition and Negotiations
with Canadian Distributor
TORONTO, ONTARIO--(Marketwired - Apr 7, 2014) - GreenStar
Agricultural Corporation, (TSX-VENTURE:GRE) ("GreenStar" or the
"Corporation") is pleased to provide an update on its recent
acquisition of Bayannur City Beichen Tomato Products Co., Ltd., an
Inner Mongolia based tomato pulp producing company ("Beichen"), and
the status of negotiations for the acquisition of a Canadian food
products distributor operating in North America.
Beichen
Acquisition: GreenStar successfully completed the
acquisition of Beichen in January of 2014. Subsequent to closing
the acquisition, GreenStar has entered into a one year lease for
5,930 acres of land close to the Beichen tomato pulp processing
facility. These lands will be used to grow fresh tomatoes, and will
be planted in April so that harvesting can commence in August of
this year. The harvested tomatoes are expected to provide the
additional raw material required for Beichen to increase its tomato
pulp production volume. Beichen currently produces 20,000 tonnes of
tomato pulp. The leased land could yield up to 30,000 tonnes of
tomato pulp per harvesting season... The price of tomato pulp has
risen by approximately 40% between 2013 and 2014 and is currently
approximately CDN$1,165 per tonne. By securing its' own supply of
raw tomatoes for its tomato pulp processing facility GreenStar is
attempting ensure its ability to meet the growing demand for its
tomato based products. Utilizing its own raw tomatoes will reduce
the input costs of raw materials that Beichen uses in the
manufacturing of tomato pulp. Beichen will continue to purchase
additional raw tomatoes from other local producers.
Negotiations with
Canadian Distributor: GreenStar continues its negotiation
for the acquisition of a Canadian food distributor, as discussed in
its news release dated December 16, 2013. The Corporation's
objective is to proceed to the execution of a mutually acceptable
Letter of Intent, after all information about the target company
has been received, including but not limited to the audited
financial statements for the fiscal year ended December 31,
2013.
GreenStar will continue to provide updates on this transaction
as events warrant.
About GreenStar Agricultural Corporation
GreenStar operates two main divisions, agricultural and food
processing. The agricultural division is involved in the
cultivation and harvesting of agricultural products such as fresh
fruit and vegetables, for sale either directly as fresh fruit and
vegetables or canned, and sold overseas and domestically. The food
processing division is primarily involved in the processing of
canned food, which includes canned tomato paste, canned boiled
bamboo shoots, canned oranges, canned peaches and various other
types of fruits and vegetables.
GreenStar has been operating for over 19 years. Through the
application of science and technology in production, quality
control and assurance, and business operations and management,
GreenStar has focused on maintaining product and reputational
excellence with a high standard of food quality. Key assets include
a well established management team, modern production facilities,
and a close partnership with local farmers.
GreenStar Agricultural Corp. is listed on the TSX Venture
Exchange under the symbol "GRE".
For further information on GreenStar please visit our web site
at www.greenstaragricultural.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Caution Regarding Forward-Looking Information:
Certain statements in this press release may constitute
''forward looking'' statements which involve known and unknown
risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Corporation to be
materially different from any future results, performance or
achievements expressed or implied by such forward looking
statements. When used in this press release, such statements may
use such words as ''may'', ''will'', ''expect'', ''believe'',
''plan'' and other similar terminology. These statements reflect
management's current expectations regarding future events and
operating performance and speak only as of the date of this press
release. Forward looking information in this press release includes
management's plan to grow tomatoes on the new leased lands and
timing for the planning and harvesting, management's expectation on
increasing its tomato pulp production volume, management's
expectation on its ability to meet the growing domestic and
world-wide demand for tomato based food products, management's
expectation on significantly reducing the input costs of raw
materials for Beichen and for GreenStar's Pucheng tomato paste
processing plant, management's plan to continue to purchase
additional raw tomatoes from local farmers, management's
expectation on the execution of a Letter of Intent with the
Canadian food distributor, and management's plan to continue to
provide timely updates on both transactions. These forward
looking statements involve a number of risks and uncertainties.
Some of the factors that could cause actual results to differ
materially from those expressed in or underlying such forward
looking statements are the effects of, as well as changes in:
international, national and local business and economic conditions;
political or economic instability in the Corporation's markets;
competition; legislation and governmental regulation; and
accounting policies and practices. The foregoing list of factors is
not exhaustive. Please see the Corporation's annual MD&A dated
April 25, 2013, available on www.sedar.com, for a more detailed
description of the risk factors. The Corporation undertakes no
obligation to update publicly or revise any forward looking
information, whether a result of new information, future results or
otherwise, except as required by law.
GreenStar Agricultural CorporationRobert Macdonald(416) 849
3858rgam36@gmail.com Investor Cubed Inc.:(647) 258-3311(888)
258-3323info@investor3.cawww.greenstaragricultural.com
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