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Sunwin International Neutraceuticals Acquires
60% Interest in Qufu Shengwang Stevia Biology and Science Company
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Sep 09, 2008
Sunwin International Neutraceuticals, Inc. (OTCBB: SUWN), a leader
in the production and distribution of Chinese herbs, veterinary
medicines and one of the world's leading producers of all natural,
zero calorie Stevia in China, announced today that on September 2,
2008 its wholly owned subsidiary, Qufu Natural Green Engineering
Co., Ltd. entered into an amendment to its June 30, 2008 agreement
to acquire a 60% equity interest of Qufu Shengwang Stevia Biology
and Science Co., Ltd. ("Qufu Shengwang") from Shandong Shengwang
Group Co., Ltd. ("Shengwang") and an amendment to the stock purchase
agreement entered into between Sunwin International and Shengwang as
of June 30, 2008.
Pursuant to the September 2, 2008 amendments, Sunwin International
acquired a 60% interest in Qufu Shengwang for a purchase price of
$6,200,413 through a stock exchange. The purchase price was based on
the net tangible book value of Qufu Shengwang as set forth in its
financial statements as of April 30, 2008 which were audited in
accordance with Generally Accepted Accounting Principles in the
United States and shares of Sunwin issued were based on a twenty day
moving average of Sunwin's common stock ending on August 29, 2008.
As part of the amended transaction, the parties have entered into a
"make good" agreement in which Shengwang agreed to return to Sunwin
International a prorata number of the shares it acquired as part of
this transaction in the event that Qufu Shengwang does not earn a
minimum of $5,000,000 in net income over a period of 36 consecutive
months after completion of the acquisition.
Management of Sunwin International estimates that Qufu Shengwang has
the current capacity to generate approximately $15 million in sales
annually and yield a 20% to 30% net profit margin. Qufu Shengwang
was founded with its South Korean partner, Korea Stevia Co., Ltd.
and Shengwang Group Corp. in June 2007. Qufu Shengwang manufactures
and sells animal feed, agricultural organic fertilizers and bio
fertilizers produced from the residue of stevia stock leaves. These
Stevia based fertilizers and animal feeds have numerous benefits
including low cost production, high nutrient value for soil, higher
fructose levels with fewer calories for feeds and a proven ability
to breakdown nicotine, dioxin and other harmful chemicals for
plants.
Commenting on the Joint Venture, Ms. Dongdong Lin, Sunwin
International CEO, stated, "We are very pleased to acquire Qufu
Shengwang, as we strive to expand our business through vertical
integration. Qufu Shengwang is a natural fit for our company as it
uses stevia residue to make organic bio-fertilizer and organic
animal feeds. In addition, its products are sold into many of the
same end markets as our current line of veterinary feeds and
medicines. It broadens our product offerings and enables us to
profitably monetize parts of the stevia plant that would presently
be waste in our production process. We are confident that this
operation coupled with our current growing operations will lead to a
strong financial performance in fiscal 2009 and beyond."
About Sunwin International Neutraceuticals, Inc.
Sunwin International Neutraceuticals engages in the areas of
essential traditional Chinese medicine, zero calorie natural
sweeteners (stevia), and veterinary medicines and feeds prepared
from 100 percent organic herbal ingredients. As an industry leader
in agricultural processing, Sunwin has built an integrated global
firm with the sourcing and production capabilities to meet the needs
of consumers throughout the world. Sunwin also makes such
value-added products as specialty veterinary food ingredients and
specialty feed ingredients. For more info about Sunwin, please visit
http://www.sunwin.biz
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