Harbin, China, 21 December 2009 -- (GLOBE NEWSWIRE) -- China Forestry Inc. (OTCBB:CHFY - News), a timber investment group in the People's Republic of China, announced today that the landscape engineering and construction firm currently under a nonbinding letter of intent with the company is restructuring its corporation to comply with China's merger and acquisition regulations and restrictions on foreign direct investment.
The company's acquisition target, Shaan'Xi Province Gaoxin Agriculture and Animal Husbandry Development Holding Co., Ltd., in Xi'An City, Shaan'Xi Province, is in the process of restructuring from a Chinese joint stock limited company to a limited liability company to facilitate its acquisition by U.S. incorporated China Forestry.
Commenting on these latest developments, Yuan Tian, CEO of CHFY, stated, "In China, it is very difficult for a Chinese holding company to be acquired by a foreign company. We are encouraged by the restructuring progress and we are supporting their efforts to create the optimal corporate structure. I believe this acquisition will not only enhance shareholder value but ultimately our efforts to uplist our shares to a higher exchange."
"We expect their restructuring to be completed by the end of the year, and to begin our formal acquisition negotiations in January," Tian said.
China Forestry Inc. (OTCBB:CHFY - News) 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 1561 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, visit http://www.chinaforestryinc.com.