GreenStar Agricultural Announces Closing Date of Beichen Tomato Pulp Acquisition and Enters Into Negotiations to Acquire Canadian Food Importer and Distributor
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 12/16/13 -- GreenStar Agricultural Corporation (TSX VENTURE: GRE) ("GreenStar" or the "Corporation"), a producer of canned tomato paste, canned peaches, mandarin oranges and grapes, and a supplier of fresh mandarin oranges, young bamboo shoots and mature bamboo, today announced that after satisfactory completion of its due diligence it will close the previously announced acquisition of Beichen Tomato Products Company of Bayannur City, Inner Mongolia on January 1, 2014. The purchase price of CDN$4.2 Million (RMB25 Million) is to be paid in cash from GreenStar's treasury. As part of the due diligence process, three independent Canadian directors of GreenStar visited the Beichen facility during the week of December 9, 2013. Commenting on the acquisition, Mr. Conor Bill, an independent Canadian director of GreenStar, said, "After our inspection tour, we are satisfied that the acquisition of the Beichen operations will be complimentary and accretive to GreenStar's current business and will assist GreenStar in its plans to become a vertically integrated producer of tomato based products, while significantly increasing its tomato paste production capacity, which last year represented 55% of GreenStar's revenues."
GreenStar also announced that it has entered into negotiations to acquire a Canadian based importer and distributor of food products which has annual revenues of approximately CDN$50 Million. Commenting on the proposed transaction, Mr. Robert Macdonald, GreenStar's Manager of Business Development, stated, "This potential acquisition reflects GreenStar's strong determination to enter the North American food industry and establish a market for its products on this continent. Acquiring a Canadian food distribution operation would provide GreenStar with a unique platform for its operations in Canada. While we are confident that a mutually beneficial transaction can be structured, there is currently no assurance that any transaction will be consummated."
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 .
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 expectation of closing the Beichen acquisition, expected closing date and expected payment of purchase price; management's belief that Beichen operations will be complimentary and accretive to GreenStar's current business, that Beichen will assist GreenStar in its plans to become a vertically integrated producer of tomato based products, and that Beichen operation will allow the Corporation to significantly increasing its tomato paste production capacity; management's expectation to enter the North American food industry and establish a market for its products on this continent, management's belief that acquiring a Canadian food distribution operation would provide Greenstar with a unique platform for its operations in Canada and management's belief that a mutually beneficial transaction can be structured. 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 risks inherent to negotiations between parties, risk of parties not reaching an agreement or breaching an agreement, risk of regulatory approval not being obtained, 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 , 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.
Contacts:
GreenStar Agricultural Corporation
Robert Macdonald
(416) 849 3858
Investor Cubed Inc.
(647) 258-3311, (888) 258-3323
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Datum: 16.12.2013 - 14:25 Uhr
Sprache: Deutsch
News-ID 324577
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TORONTO, ONTARIO
Kategorie:
Farming
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