Sino-Forest Corporation Welcomes Ontario Securities Commission Investigation
Toronto, Ontario, Canada, 08 June 2011 -- Sino-Forest Corporation (TSX: TRE), a leading commercial forest plantation operator in China, today confirmed that the Ontario Securities Commission (OSC) has opened an investigation. The company expected the OSC to take this step given its responsibility as the public regulator and the recent unusual trading activity and volatility in Sino-Forest’s stock price and the allegations contained in Muddy Waters’ report. The company welcomes the OSC initiative and believes that the issues the OSC will seek to address will be consistent with the investigation commenced by an independent committee of the board of directors.
The company has also formally requested that the Toronto Stock Exchange and the Investment Industry Regulatory Organization of Canada investigate the trading of the company’s shares by Muddy Waters LLC and its principal, Carson Block, and anyone associated with these persons in advance of the issuance of the Muddy Waters’ report concerning Sino-Forest.
The company also intends to request an investigation by the Singapore Exchange Ltd in respect to the trading of the company’s bonds.
Sino-Forest Corporation is a leading commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong Kong-listed investment holding company (HKSE: 00094) with operations based in Suriname, South America, and New Zealand, which is involved in responsible and sustainable log harvesting, lumber processing, and sales and marketing of logs and lumber products to China and other countries around the world. Sino-Forest’s common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Learn more at www.sinoforest.com.