HARBIN, China, Dec. 21, 2009 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today that the landscape engineering and construction firm currently under a non-binding letter of intent with the Company is restructuring its corporation in order to comply with China's merger and acquisition regulations and restrictions on foreign direct investment.
The Company's acquisition target, Shaan'Xi Province Gaoxin Agriculture and Animal Husbandry Development Holding Co., Ltd., in Xi'An City, Shaan'Xi Province is in the process of restructuring from a Chinese joint stock limited company to a limited liability company in order to facilitate its acquisition by US incorporated China Forestry.
Commenting on these latest developments, Mr. Yuan Tian, CEO of CHFY, stated, "In China, it is very difficult for a Chinese holding company to be acquired by a foreign company. We are encouraged by the restructuring progress and we are supporting their efforts to create the optimal corporate structure. I believe this acquisition will not only enhance shareholder value but ultimately our efforts to uplist our shares to a higher exchange."
"We expect their restructuring to be completed by the end of the year, and to begin our formal acquisition negotiations in January," said Mr. Tian.
About China Forestry Inc.:
China Forestry Inc. (OTCBB:CHFY) is a timber investment group formed in the People's Republic of China to conform to State laws that prohibit non-PRC ownership of forest lands. The Company's strategy is to capitalize on the Chinese Government's decision to promote sustainable forest management through land tenure reforms that include the transferability of forest user right certificates to PRC entities. The Company's current holdings include ownership of four user right certificates representing 1,561 hectares of State forest assets in China's northeastern Heilongjiang Province, home to China's most valuable timber and one of the most distinctive temperate forests in the world due to its rare biodiversity. For more information, please visit the Company's website at: http://www.chinaforestryinc.com.
Forward Looking Statement:
Except for historical information contained herein, the matters set forth above may be forward-looking statements that involve certain risks and uncertainties that could cause actual results to differ from those in the forward-looking statements. Words such as "anticipate," "believe," "estimate," "expect," "intend and similar expressions, as they relate to the Company or its management, identify forward-looking statements. Such forward-looking statements are based on the current beliefs of management, as well as assumptions made by and information currently available to management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors such as the level of business and consumer spending, the amount of sales of the Company's products, the competitive environment within the industry, the ability of the Company to continue to expand its operations, the level of costs incurred in connection with the Company's expansion efforts, economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.