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Slide #25. GreenStar Agricultural Corp. — Beichen Tomato Products Company
GreenStar Agricultural Corp. (GRE.CA)
Beichen Tomato Products Company
GreenStar Agricultural Corp., ("GreenStar" or the "Corporation") (TSX VENTURE:GRE) today announced that it has commenced the closing procedures for the acquisition of Bayannur City, Inner Mongolia Autonomous Region, PRC, based Beichen Tomato Products Company ("Beichen"). The RMB 25.0 Million (CDN$4.2 Million) purchase price was paid as to RMB 22.0 Million (CDN$ 3.7 million) in cash from GreenStar's treasury, and RMB 3.0 Million (CDN$ 500,000) was held back by GreenStar for 90 days to allow for post closing adjustments. Final closing is expected within 30 days, pending receipt of all governmental approvals and issuance of a new business license. Beichen will continue to operate under its current name as a wholly owned subsidiary of Fujian Pucheng Star of Green Foodstuff Co. Ltd., which in turn is a wholly owned subsidiary of GreenStar Agricultural Corp. After final closing, GreenStar plans to immediately begin expanding Beichen's current production capacity of 20,000 tons of tomato pulp per annum based on one production line, to 40,000 tons per annum by 2015 with the purchase and commissioning of an additional automated production line, which is expected to produce an additional 20,000 tons of tomato pulp per year.
Greenstar Agricultural, through its subsidiary, is engaged in agricultural farming and food processing. Agricultural activities are the cultivation of biological assets to harvest agricultural produce for sale. Fresh fruits harvested from agricultural produce are either for sale freshly domestically in China or canned for sale both China domestically and overseas. Canned food processing also includes manufacturing of canned vegetable and fruits including canned tomato paste, canned boiled bamboo shoots, canned loquat and various other types of canned fruits.
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