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Reforestation company agrees to acquire grass feedstock supplier in China.

Maple Leaf Reforestation (TSX: V.MPE, Bullboard) is one company that’s always on this author’s radar screen. It’s a company with an interesting story and an often interesting Bullboard. Today the Canadian, China-based reforestation company announced that it had entered into an agreement to acquire “100% of the shares of Funong Alfalfa Feedstock Supply Limited (the Vendor or "Funong"), a private Chinese company, for a total consideration of Rmb$1,000,000 (equivalent of Cdn$160,000) (the "Purchase Price").” 

More from the news release: 

The Agreement will make Maple Leaf the owner of all capital assets of Funong and all registered patents rights currently owned by the Vendor. Such patent rights include two patents relating to feedstock processing and two involving machinery. The Agreement also includes technology transfers, existing sales/marketing network, supply contracts and existing farm leasing agreements. (Go to news release.) 

Other statements in the release indicate that there is strong demand for grass feedstock products in China, and that alfalfa is one of the best. Maple Leaf intends to grow alfalfa plants in between rows of Yellowhorn trees, which it cultivates as part of its reforestation business. The alfalfa helps protect against soil erosion and when harvested can be used as a premium grass feedstock for cattle and sheep. 

On the Maple Leaf Bullboard yesterday (Tuesday), Trigger911 voiced a disgruntled opinion about recent share price action: “What the hell's going on to this [stock]? It reaches new lowest [sic] every day.” 

Well, not quite – but the stock is off quite a bit from highs near $1.60 (all prices quoted in US dollars) reached back in October 2007. In April of that year, the stock began a run-up from around 15 cents that eventually led to the $1.60 level, before descending to its current 30 cent mark – still double what it was trading at pre-April 2007.

 


Assouf2008
contributed an opinion based on recent events in China:
 

The earthquake in China yesterday might also have something to do with the steep sell off today. I believe it is far away from MPE's base of operations, and therefore unaffected. I think the market today just didn't know how to digest this information, and it's a case of throwing out the baby with the bath water as investors may have been nervous about the impact on China's economy. 

To see how today’s news regarding the Funong Alfalfa takeover will affect the company, tune in to the Maple Leaf Bullboard.

 
 
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Comments
Don't let the chart discourage you. Big price drop was due to Board of Directors conflict between CEO and Chairman. Chairman is gone and he dumped about a half million shares in about 4 days at the beginning of April and there are still blocks being sold keeping the price down for the time being. New directors on board and compnay is positioned in growth sectors. Tree reforestation in China through their green house operation Agreement with govt. for free land to grow yellowhorn trees that produce a fruit for bio fuel and cooking oil that will be processed at a plant that is set for operation within 3 years and could output up to 100,000 toms of biofuel a year. New agreement for purchase of Alfafa company at a bargain price that will produce crops to feed cattle and sheep to feed the growing Chinese middle class and can be leverages with the above bio-fuel project. ( Which is why cooking oil is also in short supply) + Recent listing on Frankfurt exchange
 
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