Maple Leaf Reforestation Inc.

April 24, 2012 08:30 ET

Maple Leaf Expects Record Annual Revenue From Its Greenhouse Operation in China in 2012

CALGARY, ALBERTA--(Marketwire - April 24, 2012) - Maple Leaf Reforestation Inc. ("Maple Leaf") (TSX VENTURE:MPE) is pleased to provide the following operational update:

Greenhouse Operation

Maple Leaf's management is excited to announce that its first seedling shipment of 2012 was recently made, with over 1.25 million seedlings being shipped from its Inner Mongolia Greenhouse in April. The primary shipment was 1 million seedlings which were shipped to Inner Mongolia Ordos City Zhungeer Chak Island Co. Ltd. as per the sales contract announced November 12, 2011. The contract price was revised from 1.00 Rmb (approximately $0.16 Cdn) to 0.75 Rmb (approximately $0.12 Cdn) as a courtesy discount with the agreement that the price for next year's order will move back to 1 Rmb per seedling. Another 1 million seedlings are on route to returning customers at an average price of 0.75 Rmb per seedling. It is anticipated that approximately 3-4 million seedlings will be delivered by the Corporation before the end of May. Maple Leaf's management expects that approximately 10 million seedlings will be sold and delivered during the 2012 shipping season.

Based on anticipated sales of approximately 10 million seedlings this shipping season, and assuming an average sale price per seedling of 0.75 Rmb, it is anticipated that the Corporation's Greenhouse will be able to return a minimum of $500,000 Cdn to Maple Leaf's Head Office this year. These proceeds will provide more than adequate working capital for Maple Leaf's Head Office and the Greenhouse will also be well positioned to fund its ongoing operational costs.

Germinating Pot Machinery

Maple Leaf announced on February 6, 2012 that it had entered into a joint-venture with a Hong Kong based private company for the set-up of a germinating pot production facility at Maple Leaf's Inner Mongolia Greenhouse (the "JV"). The JV is significant to Maple Leaf's Greenhouse operation because it will provide a versatile and readily available source of germinating pots, which are required for all of Maple Leaf's planting at its Greenhouse, it will eliminate the need for Maple Leaf to purchase pots from third party vendors at substantially higher prices and it will also provide access to a variety of germinating pots. For further details see Maple Leaf's news release dated February 6, 2012.

The machinery and all raw materials for the germinating pot production facility have now arrived and have been assembled at Maple Leaf's Greenhouse in Inner Mongolia. The new machinery has a capacity to produce approximately 100,000 specialized germination pots per day or 36 million per year, with the first pots expected to roll off the assembly line this week.

This technologically advanced machinery not only reduces the Company's seedling production costs by 30 to 40%, it also enables Maple Leaf to sell the surplus capacity of approximately 20 million pots per year to other greenhouse operators, thereby generating an additional source of revenue for the Greenhouse. Maple Leaf has been contacted by several parties that have expressed interest in testing Maple Leaf's pots and if effective, entering ongoing sales contracts.

The pots also have a valuable application in the horticultural and vegetable growing businesses, and Maple Leaf has already been contacted by various parties in these industries regarding both the pots and its specially formulated peat moss, which is the raw material used to produce the pots.

Corporate Update

The Private Placement announced on February 6, 2012 has been closed with $130,000 gross proceeds raised. Given that Maple Leaf is expecting to receive sufficient funds for working capital and operational costs from its Greenhouse as early as June 2012, it will not be pursuing additional financing opportunities at this time.

Mr. Raymond Lai, President & CEO of Maple Leaf comments, "This is the 1st year that the Greenhouse operation will able to send back money to Canada to support its Head Office. Every member of our management team is very excited and thrilled with the prospect that Maple Leaf has achieved its goal of being self-funded, and this now also marks the beginning of a new era for its seedling products as the recognition in Northern China of product quality is evident based on the continued growth of sales inquiries from both government and private sector customers."

For further information regarding Maple Leaf Reforestation Inc., visit

About Maple Leaf Reforestation 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 Company 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.

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.

Last Close: April 23, 2012 - $0.035

Shares Issued: 84,186,427

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.

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