TORONTO, ONTARIO--(Marketwire - Aug. 16, 2012) - China Green Star Agricultural Corporation (TSX VENTURE:GRE) ("Green Star" or the "Corporation") announced that its two major shareholders, Bliss Time Limited ("BVI Bliss") and Ally Fast Limited ("BVI Ally"), have completed a change of nominee shareholder effective August 10, 2012.
BVI Bliss and BVI Ally hold 3,724,994 (24.7% non-diluted) and 2,617,051 (17.4% non-diluted) common shares of the Corporation, respectively. BVI Bliss and BVI Ally also hold 6,027,716 and 4,019,079 non-voting special warrants of the Corporation, respectively, resulting in total holdings of 9,752,810 (30.08%) and 6,636,131 (20.46%) common shares on a diluted basis, respectively. All of the issued capital of each of BVI Bliss and BVI Ally was held by Ms. Lucy Xia, a resident of Washington State, USA.
Ms. Lucy Xia's ownership in BVI Bliss and BVI Ally is subject to an option granted under an option agreement dated as of March 10, 2010 between Ms. Lucy Xia and Mr. Guan Lianyun, President, CEO and Chairman of the Corporation (the "BVI Bliss Option Agreement") and between Ms. Lucy Xia and Ms. Luo Huirong, Vice President and a director of the Corporation (the "BVI Ally Option Agreement"), respectively, pursuant to which 100% of Ms. Xia's ownership in BVI Bliss and BVI Ally is expected to be transferred to Mr. Guan Lianyun and Ms. Luo Huirong, respectively, by March 10, 2013. Mr. Guan is the sole director and officer of BVI Bliss, and Ms. Luo Huirong is the sole director and officer of BVI Bliss. Ms. Lucy Xia does not have the right to change or appoint director or officer of BVI Bliss or BVI Ally pursuant to the BVI Bliss Option Agreement or the BVI Ally Option Agreement, respectively. As a result, Mr. Guan controls BVI Bliss and Ms. Luo controls BVI Ally, notwithstanding the fact that the option under the BVI Bliss Option Agreement or the BVI Ally Option Agreement has not been exercised.
On August 10, 2012, Ms. Lucy Xia transferred her ownership in BVI Bliss and BVI Ally to Mr. Xiusun Ding, a Philippine citizen, and Ms. Xia's rights and obligations under each of the BVI Bliss Option Agreement and the BVI Ally Option Agreement are also assigned to Mr. Ding. No consideration was paid for the transfers. Accordingly, Mr. Ding is now the registered owner of all outstanding capital stock of each of BVI Bliss and BVI Ally. However, the control of BVI Bliss and BVI Ally remains with Mr. Guan and Ms. Luo, respectively, by the continued operation of the BVI Bliss Option Agreement and BVI Ally Option Agreement. As a result, there is no change of control of the Corporation due to the transfers from Ms. Xia to Mr. Ding.
About Green Star
Green Star operates two main divisions, agricultural and food processing. The agricultural division is involved in the cultivation and harvesting of agricultural products such as fresh fruit and vegetables, for sale either directly as fresh fruit and vegetables or canned, and sold overseas and domestically. The food processing division is primarily involved in the manufacturing of canned food which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables.
The Corporation has been operating for over 18 years, and has focused on maintaining product and reputational excellence and a high standard of food quality, through the application of science and technology in production, quality control and assurance, business operations and management. Key assets include a well established management team, modern production facilities, and a close partnership with local farmers.
China Green Star Agricultural Corp. is listed on the TSX Venture Exchange under the symbol "GRE".
For more information on the Company, please visit our web site at www.cgsac.com.
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.