Singapore, (ANTARA News/PRNewswire-AsiaNet) - China Agro-Technology Ltd., (OTC Bulletin Board: CAGTF) has acquired the planting and land use rights for 494,200 acres of land in Indonesia for the purpose of generating revenues from a plantation for Jatropha plants.
The agreement was signed on February 5, 2008 with Boulevard Holdings Group Ltd for the acquisition rights in growing Jatropha, managing Jatropha plantations, and harvesting Jatropha seeds to be crushed for its production of non-edible vegetable oil for bio-diesel and its other bio-mass components.
The strategic acquisition allows CAT to diversify its growth and reduce risk in the Jatropha industry. Management believes that the acquisition will be worth over $300 million within five years based on projected global demand for Jatropha by-products. The Company noted that, according to an August 24, 2007 Wall Street Journal article (which was also cited on CNBC on September 14, 2007), Goldman Sachs projected that Jatropha was one of the leading candidates for global biodiesel production.
Jatropha trees produce seeds containing up to 40% oil. When the seeds are crushed and processed, the resulting oil can be used in a standard diesel engine, while the residue can be processed into biomass to power electricity plants. The by-products are often cited as a clean, green and prime source for global biodiesel supply. The price of Jatropha-based biodiesel has historically been highly profitable, ranging from US$650 to US$750 per ton, based on current negotiated market futures.
CAT Founder Chairman Dr. Harry He said, "We expect CAT's Jatropha production path to begin with immediate revenues from the sale of Crude Jatropha Oil ("CJO") from existing harvests. We will concurrently apply our innovative agro-technology processes to accelerate growth and yield for the plantation; we expect that the entire 494,200 acres can be converted to our fast-growth/high-yield technology in just two years. We believe that the new acquisition rights on this one half million acres over the next five years should increase the profit value of the Company."
The new acquisition was completed with 30% cash and 70% newly-issued shares at a premium conversion of US$2.10 via convertible bonds. The acquisition significantly expands CAT's current portfolio of approximately 50,000 acres of Jatropha plantations in Indonesia. CAT previously forecast a fair profit value of US$45 million for the remaining fiscal year 2008 and will continue to focus on Agro-Technological Research & Development for future growth based on its existing profitable operations.
Dr. He continued, "This acquisition represents a major step forward in CAT's strategy to build critical mass and economies-of-scale in production operations. The rights to this extensive tract of land provide us with security for our feedstock which -- when combined with our leading-edge Jatropha cultivation, our Agro-Technology, and our trained work-force -- allows us to accelerate our CJO production in order to meet our revenue targets. CAT's super-hybrid Jatropha plants in our current plantations are able to achieve higher yields of CJO oil seed within a shorter growth period, while positioning the biodiesel market to meet the world's fast-growing demand."
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 paper 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 an 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 $32.8 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.
Contact:
Ashley Hull
ProPublic Media LLC
hunnyhull@propublicmedia.com
SOURCE China Agro-Technology Ltd.
CONTACT: Ashley Hull
of ProPublic Media LLC,
hunnyhull@propublicmedia.com,
for China Agro-Technology Ltd.
(CAGTF CAGTF.OB)
The agreement was signed on February 5, 2008 with Boulevard Holdings Group Ltd for the acquisition rights in growing Jatropha, managing Jatropha plantations, and harvesting Jatropha seeds to be crushed for its production of non-edible vegetable oil for bio-diesel and its other bio-mass components.
The strategic acquisition allows CAT to diversify its growth and reduce risk in the Jatropha industry. Management believes that the acquisition will be worth over $300 million within five years based on projected global demand for Jatropha by-products. The Company noted that, according to an August 24, 2007 Wall Street Journal article (which was also cited on CNBC on September 14, 2007), Goldman Sachs projected that Jatropha was one of the leading candidates for global biodiesel production.
Jatropha trees produce seeds containing up to 40% oil. When the seeds are crushed and processed, the resulting oil can be used in a standard diesel engine, while the residue can be processed into biomass to power electricity plants. The by-products are often cited as a clean, green and prime source for global biodiesel supply. The price of Jatropha-based biodiesel has historically been highly profitable, ranging from US$650 to US$750 per ton, based on current negotiated market futures.
CAT Founder Chairman Dr. Harry He said, "We expect CAT's Jatropha production path to begin with immediate revenues from the sale of Crude Jatropha Oil ("CJO") from existing harvests. We will concurrently apply our innovative agro-technology processes to accelerate growth and yield for the plantation; we expect that the entire 494,200 acres can be converted to our fast-growth/high-yield technology in just two years. We believe that the new acquisition rights on this one half million acres over the next five years should increase the profit value of the Company."
The new acquisition was completed with 30% cash and 70% newly-issued shares at a premium conversion of US$2.10 via convertible bonds. The acquisition significantly expands CAT's current portfolio of approximately 50,000 acres of Jatropha plantations in Indonesia. CAT previously forecast a fair profit value of US$45 million for the remaining fiscal year 2008 and will continue to focus on Agro-Technological Research & Development for future growth based on its existing profitable operations.
Dr. He continued, "This acquisition represents a major step forward in CAT's strategy to build critical mass and economies-of-scale in production operations. The rights to this extensive tract of land provide us with security for our feedstock which -- when combined with our leading-edge Jatropha cultivation, our Agro-Technology, and our trained work-force -- allows us to accelerate our CJO production in order to meet our revenue targets. CAT's super-hybrid Jatropha plants in our current plantations are able to achieve higher yields of CJO oil seed within a shorter growth period, while positioning the biodiesel market to meet the world's fast-growing demand."
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 paper 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 an 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 $32.8 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.
Contact:
Ashley Hull
ProPublic Media LLC
hunnyhull@propublicmedia.com
SOURCE China Agro-Technology Ltd.
CONTACT: Ashley Hull
of ProPublic Media LLC,
hunnyhull@propublicmedia.com,
for China Agro-Technology Ltd.
(CAGTF CAGTF.OB)
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