Chai-Na-Ta announces closing of CDN $5.625 (US $4.16) million partnership with President Asian Enterprises Inc. and Strategic Alliance.LANGLEY, British columbia--(BUSINESS WIRE)--Oct. 24, 1995-- CHAI-NA-TA CORPORATION (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CCCFF TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). : CC ) Chai-Na-Ta Corp. announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Chai-Na-Ta Farms Ltd. ("CNT (Carbon NanoTube) See nanotube. Farms"), has entered into a partnership with 499599 BC Ltd., a subsidiary of President Canada Fund Inc. ("President") based in Vancouver, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography , for the cultivation of North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. ginseng ginseng (jĭn`sĕng), common name for the Araliaceae, a family of tropical herbs, shrubs, and trees that are often prickly and sometimes grow as climbing forms. crops on 91 acres of land. This news release is a follow-up to the August 22, 1995 "Letter of Intent" news release. The partnership operation will be called President/Chai-Na-Ta Farms Partnership ("the Partnership") and will be owned 70 per cent by 499599 BC Ltd. and 30 per cent by CNT Farms. In accordance with planting and harvest schedule requirements, the term of the partnership will be until March 31, 2000. The transaction is in escrow pending certain documents being finalized. President will provide funding to the partnership of approximately CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $5.625 million, (US $4.16 million) from immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. funds managed by President. A portion of the funds will be used to purchase, from CNT Farms, 40 acres ("Initial Acres") of ginseng crops at various stages of maturity within the four-year ginseng harvest cycle. These ginseng crops are currently under cultivation in British Columbia and are contained within the portfolio of CNT Farms. CNT Farms will provide the expertise and management necessary to cultivate the ginseng. The balance of the funds will be used to maintain and harvest the Initial Acres, to plant 51 additional acres in 1995, and for maintenance and harvest of the additional acreage. The Chai-Na-Ta Group has agreed to purchase all the ginseng root crop produced by this partnership. The purchase price will be set in relation to the market price in effect at the time of sale. President Asian Enterprises Inc. is a subsidiary of President Enterprises Corp. based in Taiwan. President Enterprises Corp. is one of the largest food processors and distributors in the world and the largest operation of its kind in Taiwan and Asia. Through their subsidiaries, they control over 20 large scale manufacturing plants and superstores, 1,700 chain stores and 30,000 employees in Taiwan, mainland China, south east Asia East Asia A region of Asia coextensive with the Far East. East Asian adj. & n. , the United States and Canada. Total assets of the President Group in Taiwan and Canada are over CDN $2.3 billion (US $1.7 billion) with total sales for 1994 exceeding CDN $2.8 billion (US $2.1 billion). "I am pleased to say that the President Group has had considerable experience and success in international investments with multi-national corporations. We work with market leaders in their respective fields who have proven track records of business success and professional expertise. We are extremely fortunate to have Chai-Na-Ta as our partner in this exciting strategic alliance," said Jack Lee, President of President Canada Fund Inc. Chai-Na-Ta's President and C.E.O., Gerry Gill adds, "This is a great strategic alliance for Chai-Na-Ta. It provides both revenue and funding for its farm growth and also provides significant opportunity for the manufacture and distribution of ginseng based value-added products through President Asian Enterprises Inc., an affiliated company of President. Furthermore, this strategic alliance will provide additional retail outlets for the ginseng based valued-added products that we are now introducing to the marketplace. This channel of distribution is in addition to the current traditional distribution through Chinese herbal shops and will reach a larger scope of consumers in the marketplace. We believe the success of this program will provide higher consumption of North American ginseng and higher revenues for the Chai-Na-Ta Group of companies." Chai-Na-Ta Corp., through its subsidiaries, is the world leader in the cultivation of ginseng root and a worldwide marketer of ginseng value-added products. CONTACT: CHAI-NA-TA CORP. Gerry Gill or Russell Vatcher, 800/406-7688 or 604/533-8883 or INVESTOR RELATIONS Investor relations The process by which the corporation communicates with its investors. Barretto Pacific Corp. Landon Barretto or Adele Lang, 206/583-8370 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion