Grand Power Logistics Group Inc.
TSX VENTURE : GPW

Grand Power Logistics Group Inc.

March 20, 2007 09:01 ET

Grand Power Announces Closing of Private Placement

CALGARY, ALBERTA AND HONG KONG, CHINA--(CCNMatthews - March 20, 2007) - Grand Power Logistics Group Inc. ("Grand Power" or the "Corporation") (TSX VENTURE:GPW) is please to announce that further to its press release issued February 23, 2007, it has completed the closing of its non-brokered private placement of convertible debentures (the "Debentures") pursuant to which the Corporation has raised $1,000,000. The Debentures bear interest at the rate of 5% per annum payable semi-annually. In addition, the Debentures have a maturity date of March 13, 2009 and will be convertible, at the option of the holder, into common shares of the Corporation at a conversion price of $0.60 per share. The Corporation will have the option, at any time after March 13, 2008, to force conversion of the Debentures into common shares of the Corporation at a price of $0.60 per share if the Corporation's shares trade at a price at least $0.75 per share for 10 or more consecutive trading days. In consideration of the advance of the principal amount by the holders of the Debentures, the Corporation has issued a total of 600,000 warrants to the Debenture holders, with each warrant allowing the holder to purchase one common share of the Corporation at a price of $0.60 per share, which warrants will expire on March 13, 2009.

All securities issued as part of the financing are subject to a hold period until July 14, 2007.

The proceeds from the sale of the Debenture will be used for working capital to expand Grand Power's business activities in Hong Kong, Macau and China.

About Grand Power Logistics Group Inc.

Grand Power Logistics Group Inc. operates principally through its wholly owned Hong Kong based subsidiary, Grand Power Express International Limited (GP Express) and provides air-freight forwarding and sea-freight services, customs brokerage, logistics, warehousing and distribution, as well as other value added services. GP Express has established operations in various regions, particularly in the Greater Pearl River Delta (GPRD), China's largest economic region. GP Express' Subsidiaries or Branch Offices in this region are located in Macau, Shenzhen, Guangzhou, and Jiangmen. GP Express also operates in other regions through Subsidiaries and Branch Offices or Supporting Offices in Shanghai, Taipei, Bangkok and Los Angeles.

Forward-looking statements: Statements included in this press release that are not historical facts may be considered "forward looking statements". All estimates and statements that describe the Company's objectives, goals or future plans are forward looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

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