SOURCE: China Food Services, Corp.

China Food Services, Corp.

May 18, 2011 10:08 ET

China Food Services, Corp. Signs Letter of Intent for Merger

BEIJING--(Marketwire - May 18, 2011) - China Food Services, Corp. (PINKSHEETS: GDHI) today announces that it has signed a letter of intent "LOI" for a merger with California Grapes International, Inc (CGI).

CGI is an innovator in international wine sales and distribution. The Company has developed the process to achieve the ultimate in a "Value Added" sales and distribution model by providing direct retail, strategic account management, wholesale distribution partners, comprehensive marketing programs and wine education. By focusing on international markets, CGI has identified and developed the necessary marketing, operations and sales support mechanisms to help domestic wineries realize the opportunity of international sales. The current business model of most distribution does not provide for an effective approach to presenting their products beyond a direct sale of a wineries' tasting room. CGI offers an approach for the winery of providing the true value of their wine to the buyer.

Jeffrey Crittenden, President of California Grapes International, stated, "After significantly growing our business over the past few years, we strongly believe that this merger will provide us the instant access to the Chinese market via the licensing, permits, distribution and market know-how that China Food Services has acquired during the past few years. Their experience and knowledge in the Chinese market will help make us the largest exclusive distributors of California wines in China."

In conclusion Frank Yglesias, CEO of China Foods Services, Corp., stated, "I am excited about the opportunity that the potential merger with California Grapes International represents to help take GDHI to the next level. This merger offers the opportunity to bring added value to our loyal shareholders and I look forward providing an update on our progress in the very near future."

While there can be no assurances that a definitive agreement will be reached, the companies expect to finalize a definitive agreement this quarter, subject to the approval of the respective Boards of Directors.

Safe Harbor Statement
Information in this press release may contain 'forward-looking statements.' Statements describing objectives or goals or the Company's future plans are also forward-looking statements and are subject to risks and uncertainties, including the financial performance of the Company and market valuations of its stock, which could cause actual results to differ materially from those anticipated. Forward-looking statements in this news release are made pursuant to the 'Safe Harbor' provisions of the United States Private Securities Litigation Reform Act of 1995.

Contact Information

  • For more information, please contact:
    China Food Services, Corp.
    USA Office: +1-888-889-8185
    USA Fax: +1-888-263-4332
    China Office: +86-10-87764741
    China Fax: +86-10-87764742
    Email Contact