VANCOUVER
,
Oct. 6
/CNW/ - IND DairyTech Limited (TSXV:IND, formerly
China
One Corporation) ("IND" or "the Company") today announced that its Chinese subsidiary received two one-year term loans from
China
Construction Bank totalling RMB 100 million (approximately
$15.9 million
). Both loans bear annual interest of 105% of the Chinese prime rate (currently 5.58%) and are renewable at the end of the one-year term. One of the loans for RMB 30 million (approximately
$4.8 million
) is secured with the Company's Qingdao farm, and the other loan for RMB 70 million (approximately
$11.1 million
) is secured by certain buildings of and a credit guarantee from a private company controlled by
Jesse Zhu
, the Chief Executive Officer and majority shareholder of the Company. The proceeds of the loans will be used to fund working capital, primarily towards increasing the milking cattle herds of the Company.
ABOUT IND DAIRYTECH LIMITED
IND, through its operating subsidiaries, is an emerging raw milk producer in
China
that is seeking to become a leading provider of high quality raw milk to the Chinese dairy industry. To meet China's increasing demand for dairy products, the Company is using Canadian cattle genetics and North American farming practices to establish and develop its dairy herd in
China
. The Company plans to develop its herd in
China
through the use of advanced breeding techniques employing Canadian Holstein embryos that it intends to use to impregnate surrogate cows. These embryos have been created through in vitro fertilization using sexed semen to achieve an approximate 90% female birth rate. The use of these advanced breeding techniques is expected to allow the Company to rapidly expand its herd. The use of Canadian Holstein embryos also provides a practical solution to China's ban on the import of live Canadian cattle.
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.
For further information: James Xiang, Chief Financial Officer, IND DairyTech Limited, (416) 886-1261, [email protected]
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