Polo Biology Global Group Corporation
TSX VENTURE : PGG

Polo Biology Global Group Corporation

March 09, 2009 08:00 ET

Polo Biology Global Group Corporation Receives Purchase Order From Nanjing Pharmaceutical Co., Ltd. Valued at a Minimum of RMB 30 Million (CDN$4.3 Million)

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 9, 2009) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Polo Biology Global Group Corporation ("Polo" or the "Company") (TSX VENTURE:PGG), is pleased to announce that, through its operating subsidiaries, it has received a one year purchase order (the "Agreement") valued at a minimum of RMB 30 million (CDN$4.3 million) and up to approximately RMB 50 million (CDN$7.2 million) from Nanjing Pharmaceutical Co., Ltd. ("NPC") (Shanghai Listing Code: 600713) for the distribution and sale of a series of the Company's products including Polo Biozyme. This purchase order is made in connection with an earlier non-binding memorandum of understanding which contemplated the purchase of the Company's product over a five-year period (the "MOU"). The initial shipment of products is expected to occur as early as the second quarter of 2009.

Founded in 1951, as one of the largest wholesale and retail distribution networks in China's healthcare sector, NPC is a 21 percent state-owned enterprise listed on the Shanghai Stock Exchange with annual revenues amounting to approximately RMB 9.3 billion (CDN$1.6 billion) in fiscal 2007, and NPC expects to exceed RMB 11 billion (CDN$2.0 billion) in fiscal 2008. NPC cooperates with more than 1,500 exclusive pharmaceutical centres and 46,000 retail distributors located in the upscale regions of Eastern China. Polo and NPC intend to take steps to integrate Polo's retail stores and selling channels into NPC's distribution network.

"We are extremely pleased to be associated with Nanjing Pharmaceutical and are looking forward to working together and building our strategic relationship for many years to come," said Paul Wu, President and Chief Executive Officer of Polo. "NPC's commitment to carry and distribute Polo products is a testament to the quality of our growing product portfolio."

Under the terms of the agreement and subject to TSX Venture Exchange, regulatory and board approvals, Polo will issue up to 2.5 million common shares to NPC for sales and marketing efforts over the five-year period as contemplated in the MOU. Up to 20 percent of the total number of shares issued under this agreement will be released annually based on the status of the fulfillment of the purchase order commitment during the same year. Furthermore, in the event that NPC exceeds the maximum purchase order commitment, subject to customary regulatory and board approvals, Polo has agreed to grant up to 300,000 stock options at an exercise price of no lower than $0.50 per share, as additional incentive and compensation to NPC.

About Polo Biology Global Group Corporation

The Company, through its operating subsidiaries in China, develops, manufactures and distributes health supplements, personal and homecare products across China under the Polo brand. The Company currently distributes its products through Polo Biology, which manages a network of retail outlets operated by its franchisees.

Cautionary Note Regarding Forward-Looking Information

Information set forth in this news release may involve forward-looking statements. Forward-looking statements are statements that relate to future, not past, events. In this context, forward-looking statements often address a company's expected future business and financial performance, and often contain words such as "anticipate", "believe", "plan", "estimate", "expect", and "intend", statements that an action or event "may", "might", "could", "should", or "will" be taken or occur, or other similar expressions. In this news release, forward looking information includes, but is not limited to, information related to the schedule for the initial shipment of products, the development of the special relationship between the Company and NPC as contemplated by the parties, the integration of the Polo and NPC channels, and NPC's commitment to Polo products. By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the shipment of products, the collection of accounts receivables, marketing and sale of securities; the need for additional financing; reliance on key personnel; the potential for conflicts of interest among certain officers, or directors with certain other projects; the volatility of our common share price and volume. Forward-looking statements are made based on management's beliefs, estimates and opinions on the date that statements are made and, except as required in accordance with applicable securities legislation, the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements. Additionally, disclosure relating to NPC has been obtained from public sources, and while the Company expects it to be reliable, Polo disclaims any liability for its accuracy or to update any such information.

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

Contact Information

  • Polo Biology Global Group Corporation
    Paul Wu
    Chief Executive Officer
    (604) 609-6155
    Email: info@pbggc.com
    or
    Polo Biology Global Group Corporation
    Ian Fodie
    Chief Financial Officer
    (604) 671-4747
    Email: ifodie@gmail.com
    or
    Polo Biology Global Group Corporation
    Ali Mahdavi
    (416) 962-3300
    Email: am@spinnakercmi.com