HARBIN, China, June 17, 2010 (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY), a timber investment group in the People's Republic of China, announced today that it has acquired all the equity interest of Hanzhong Hengtai Bio-Tech Limited ("Hengtai"), a China incorporation, by entering into a share exchange agreement dated June 10, 2010 with Financial International (Hong Kong) Holdings Company Limited, ("FIHK"); the shareholders of FIHK; as well as Hengtai.
Hengtai is a company organized under the laws of China and existed as a variable interest entity of FIHK, a company incorporated in Hong Kong. Hengtai is engaged in the business of Chinese Yew, Aesculus, Dove Tree and Dendrobium plantation. The breed of Chinese Yew and Dendrobium in the Company are endorsed by Ministry of Science & Technology of China under the China Spark Program. The paclitaxel extracted from yew is an anticancer medicine acknowledged in the world and it has obvious curative effect.
Under the terms of the share exchange agreement, CHFY will acquire 100% of all of the issued and outstanding share capital of FIHK from its shareholders in an exchange for 100,000,000 shares of newly issued common stock of the CHFY and a Convertible Note in the principal amount of $1.0 million, which note is convertible into 68,000,000 shares of common stock of CHFY. Pursuant to the Agreement, CHFY would acquire and operate FIHK and Hengtai as wholly-owned subsidiaries.
Mr. Yuan Tian, CEO of CHFY said, "This is an important step in our corporate developing, making Hengtai an integral part of our business strategy. Hengtai is a strong company with a promising future, and we believe this acquisition will enable our shareholders to realize significant value."
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.