TORONTO, ONTARIO -- (Marketwired) -- 04/07/14 -- GreenStar Agricultural Corporation, (TSX VENTURE: GRE) ("GreenStar" or the "Corporation") is pleased to provide an update on its recent acquisition of Bayannur City Beichen Tomato Products Co., Ltd., an Inner Mongolia based tomato pulp producing company ("Beichen"), and the status of negotiations for the acquisition of a Canadian food products distributor operating in North America.
Beichen Acquisition: GreenStar successfully completed the acquisition of Beichen in January of 2014. Subsequent to closing the acquisition, GreenStar has entered into a one year lease for 5,930 acres of land close to the Beichen tomato pulp processing facility. These lands will be used to grow fresh tomatoes, and will be planted in April so that harvesting can commence in August of this year. The harvested tomatoes are expected to provide the additional raw material required for Beichen to increase its tomato pulp production volume. Beichen currently produces 20,000 tonnes of tomato pulp. The leased land could yield up to 30,000 tonnes of tomato pulp per harvesting season... The price of tomato pulp has risen by approximately 40% between 2013 and 2014 and is currently approximately CDN$1,165 per tonne. By securing its' own supply of raw tomatoes for its tomato pulp processing facility GreenStar is attempting ensure its ability to meet the growing demand for its tomato based products. Utilizing its own raw tomatoes will reduce the input costs of raw materials that Beichen uses in the manufacturing of tomato pulp. Beichen will continue to purchase additional raw tomatoes from other local producers.
Negotiations with Canadian Distributor: GreenStar continues its negotiation for the acquisition of a Canadian food distributor, as discussed in its news release dated December 16, 2013. The Corporation's objective is to proceed to the execution of a mutually acceptable Letter of Intent, after all information about the target company has been received, including but not limited to the audited financial statements for the fiscal year ended December 31, 2013.
GreenStar will continue to provide updates on this transaction as events warrant.
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 www.greenstaragricultural.com.
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 plan to grow tomatoes on the new leased lands and timing for the planning and harvesting, management's expectation on increasing its tomato pulp production volume, management's expectation on its ability to meet the growing domestic and world-wide demand for tomato based food products, management's expectation on significantly reducing the input costs of raw materials for Beichen and for GreenStar's Pucheng tomato paste processing plant, management's plan to continue to purchase additional raw tomatoes from local farmers, management's expectation on the execution of a Letter of Intent with the Canadian food distributor, and management's plan to continue to provide timely updates on both transactions. 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 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 www.sedar.com, 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.