Disposal of Assets by CAT
SINGAPORE, March 3 /PRNewswire-FirstCall/ -- China Agro-Technology Ltd. ("CAT") (BULLETIN BOARD: CAGTF) today announced that, pursuant to a sales and purchase agreement dated February 18, 2008, CAT disposed of the majority of its investment holdings in its subsidiary Qing Yuan Zhao Tian Eco-Agriculture Co., Ltd. ("QYZT") to an unrelated third party. CAT held 80% equity interest in QYZT.
CAT Founder & Chairman, Dr. Harry He said, "The Company expects to account for losses on the disposal of investment holdings of approximately $810,000 in the second quarter of fiscal year 2008. Since QYZT had no revenue contribution to CAT, the overall financial impact of the disposition will be minimal." CAT also announced that a dispute regarding this transaction based on the Company's 6K filing of December 28, 2007 is being handled by Sichenzia Ross Friedman Ference LLP, the Company's legal counsel. Dr. He added, "We are confident that our 6-K filing and the financial and legal disclosures related to that filing are accurate."
About China Agro-Technology Holdings, Ltd China Agro-Technology Holdings, Ltd ("CAT") is an ecologically sustainable agricultural technology enterprise that aims at promoting a global reforestation program, generating environmental rehabilitation and serving the acute demands for resource products. CAT is principally engaged in the ecological forestry business and agricultural technology, producer and sale of quality seeds and marketing of agro-technology know-how. The Company's Directors consider the acquisition of the new land bank to be a significant addition to the Company's biological assets. With the planting of Jatropha, CAT will broaden its revenue sources and increase its role in the biodiesel markets and "going green" efforts. On the latter, CAT believes that partnering countries could leverage on its genetic engineering plantation technologies to maximize agriculture outputs and generate economies of scale while promoting an ecologically sustainable land environment. CAT is primarily involved in the ownership, management and operation of Genetically Engineered plantations, the non-tube clone plantations and the marketing of the proprietary rights and technological know-how to the global market. CAT had total revenues of $37 million in the fiscal year ended September 30, 2007, with gross profit of $35 million and net income of $32.6 million. CAT's strength is its group of highly innovative research scientists and agronomists who specialize in the R&D of agriculture and intelligent computer non-tube plant propagation technology. Driven by agro-biotechnology, CAT is able to achieve higher output with a shorter growth period. CAT's Genetically Engineered Eucalypt Trees (GEET) strains are suitable for cultivation at different climatic conditions and are able to grow within just 4-5 years time to a height of 35 to 40 meters, as compared to other species that take about 6 to 8 years. The Company's trees also yield 50% more in wood timber, about 150 cubic meters per hectare as compared to 100 cubic meters per hectare for those which currently leads the world in eucalyptus production. Other unique features of CAT's GEETs include increased resistance against pests and weeds, the ability to flourish under adverse weather and soil conditions, reduced usage of agro-chemical and growth of at least 8 rotations over a period of 50 years without the need for replanting of new saplings. Safe Harbor Statement: Under The Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectation. Ashley Hull
CONTACT: Ashley Hull of ProPublic Media, LLC., +1-310-450-9100,
2008-03-03 19:20:28 0303490 PRNEWSWIRE
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