Sunshine Agri-Tech Reports Earlier Signing and Termination of LOI to Sell Chinese Subsidiary and Change Its Business
VANCOUVER, British Columbia, Jan. 31, 2019 (GLOBE NEWSWIRE) — Sunshine Agri-Tech Inc. (TSX VENTURE: SAI) (“Sunshine Agri-Tech” or the “Company“) reports that on March the Company’s wholly owned subsidiary in Hong Kong, Sunscape (Hong Kong) Limited, previously on March 23, 2018, entered into a binding letter of intent (the “LOI”) with Nongpaike Bio-Tech (Dalian) Co., Ltd. (“Nongpaike”) for the sale of 100% of the share capital of Dalian Sunshine Agri-Tech Co., Ltd. (“Dalian Sunshine”) to Nongpaike’s for the purchase price of RMB4,900,000 Yuan. At the time of signing of the LOI, Dalian Sunshine was our wholly-owned subsidiary that carried out our research and development of livestock feed additives in Dalian, China and operated the Company’s livestock feed production business in Changchun, China through another subsidiary, Changchun Grain Biotech Co., Ltd., that is controlled by it. Dalian Sunshine also owned 100% of Changchun Sunshine Bio-Feed Co., Ltd. (“Changchun Sunshine”), which owned certain land use right that contains development obligations on the holder to begin development immediately. Changchun Sunshine did not have sufficient capital resources to meet these development obligations.
However, the LOI was terminated on June 15, 2018. As a result, the Company sought alternative transactions and entered into the agreements described in the Company’s news release issued on November 27, 2018.
The transactions described in the Company’s news release issued on November 27, 2018 are still subject to regulatory approval, including the approval of the TSX Venture Exchange and the approval of the Company’s shareholders.
About Sunshine Agri-Tech Inc.:
Sunshine Agri-Tech Inc. (TSX VENTURE:SAI) is a public company listed on the TSX Venture exchange. The Company is currently engaged in the research, development, production and sales of bio-feed, microbial feed additives and related products that aim to improve the health and performance of animals. The Company’s line of products include: (a) bio-feed; and, (b) microbial feed additives. The Company currently sells its products throughout China and Japan, and is beginning expansion into Southeast Asia. The Company is based in the city of Dalian in the Peoples Republic of China.
On Behalf of the Board of Directors
SUNSHINE AGRI-TECH INC.
Baojun Zhang, PhD
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Sunshine Agri-Tech Inc.
Chief Financial Officer