Disposal of Assets by CAT
SINGAPORE, March 3 /PRNewswire-FirstCall/ -- China Agro-Technology Ltd.
('CAT') (OTC Bulletin Board: CAGTF) today announced that, pursuant to a sales
and purchase agreement dated February 18, 2008, CAT disposed of the majority
of its investment holdings in its subsidiary Qing Yuan Zhao Tian
Eco-Agriculture Co., Ltd. ('QYZT') to an unrelated third party. CAT held 80%
equity interest in QYZT.
CAT Founder & Chairman, Dr. Harry He said, 'The Company expects to account
for losses on the disposal of investment holdings of approximately $810,000 in
the second quarter of fiscal year 2008. Since QYZT had no revenue contribution
to CAT, the overall financial impact of the disposition will be minimal.'
CAT also announced that a dispute regarding this transaction based on the
Company's 6K filing of December 28, 2007 is being handled by Sichenzia Ross
Friedman Ference LLP, the Company's legal counsel. Dr. He added, 'We are
confident that our 6-K filing and the financial and legal disclosures related
to that filing are accurate.'
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 resource 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 a significant
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
$32.6 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.
Ashley Hull
ProPublic Media, LLC.
hunnyhull@propublicmedia.com
(310) 450-9100
SOURCE China Agro-Technology Ltd.
