TORONTO, ONTARIO--(Marketwired - Sept. 25, 2014) - GreenStar Agricultural Corporation (TSX VENTURE:GRE) ("GreenStar" or the "Company") reports that the Canadian directors of the Company, including Mr. Michael Newman (Executive Chairman), and the three members of the audit committee, Messrs., Bryan Knebel, Frank Galati and Bob Guo, resigned today. Also resigning from the Company are the three Canadian management personnel, Michael Lam (CFO), Judith Hong Wilkin (Secretary), Rose Xie (Controller) and Robert Macdonald (Manager of Corporate Development). The Company's Canadian legal counsel has also provided notice that they intend to withdraw their services. The resignations are the result of a lack of co-operation, support and funding from Mr. Guan Lianyun, Chairman, CEO and President of the Company, in order to complete the 2013 audit. Despite repeated requests from the Company's Auditors, Board of Directors, Audit Committee, the Canadian Management and Legal Counsel, and continuous verbal assurances from Mr. Guan to co-operate in completing the audit process, Mr. Guan has not provided either funds nor co-operation to allow for the audit committee, or the auditors to proceed with completion of the audit.
"It is with great regret that we tendered our resignations today," said Mr. Michael Newman. "We tried our best to complete the audit in the past few months faced with the lack of cooperation and funding from Mr. Guan. Our Audit Committee had retained independent legal counsel based in China to assist with completing the audit, and obtaining information regarding GreenStar's bank accounts and securing shareholders' assets at the banks, without any success, due to the banks' unresponsive attitude. We contacted the relevant official at the Chinese Embassy in Ottawa in an attempt to secure their assistance in dealing with the banks, all to no avail. Without the support, co-operation and funding from Mr. Guan and Chinese management, we believe that the Canadian Board and management team will be unable to fulfil its obligations to the Company and to investors."
The Company also announced the resignation of Swartz, Levitsky, Feldman, the Company's auditors, who advised the Company that they had no forward visibility regarding the possibility of completing the 2013 audits, as they were not able to obtain the information requested from the Audit Committee's independent investigation due to reasons enumerated above.
The Company also advised that it had received the resignation of Investor Cubed as the Company's investor relations provider.
All future enquires with respect to the Company should be directed to Mr. Guan Lianyun.
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 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 Company 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, but is not limited to but is not limited to, Canadian management's belief that without support and funding of Chinese management they would be unable to fulfil their obligations. Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. The Company believes the expectations reflected in the forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking information contained in this press release. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward-looking information contained in this press release include, but are not limited to: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 25, 2013, available on www.sedar.com, for a more detailed description of the risk factors. The Company 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.
GreenStar Agricultural Corporation
86 138 0959 8737