The Company Enters Business of Organic Bio-Fertilizer and Organic Animal Feed
QUFU, CHINA -- (Marketwire) -- 09/08/08 -- 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.