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March 4, 2014

China

Sino Agro Food’s Mega Shrimp Farming Project

 

Sino Agro Food, an integrated, diversified agriculture technology and organic food company with principal operations in the People’s Republic of China (PCR), expects to break ground on a 300,000 metric ton a year “prawn” farm [most likely, the marine shrimp Penaeus vannamei] during the first quarter of 2014!

 

Capital Award, Inc. (“CA”), a wholly owned subsidiary of Sino Agro Food, Inc., has licensed its A-Power Technology (“APT”) to Glory Ocean Development, Ltd., (“GODL,” a Hong Kong corporation), which has signed a Sino Foreign Joint Venture (SFJV) agreement with a group of business partners in Zhongshan City, Guangdong Province, PRC.  Pursuant to the SFJV agreement, a Sino Foreign Joint Venture Company will be incorporated to develop a 533-hectare prawn and agriculture center in Zhongshan.  Hong Kong law governs the license agreement.

 

The SFJV agreement specifies that one of the responsibilities of GODL is to procure and secure the services of Capital Award, Inc., as the master consulting and servicing provider for management of the project and its developed operations.

 

In accordance with the agreement, as GODL fulfills this responsibility, CA will be engaged to provide construction and development, as well as consulting support in the form of management, supervision and training.  Phase-I fees payable to CA are presently estimated to total approximately $150 million, consisting of $104 million for construction and development and $45 million for consulting, including $8.5 million in license fees for 350 A-Power Modules for Phase-I.  Phase-I covers the period beginning on the date of the license agreement and ending two years thereafter.

 

In addition, CA is expected to be designated as the marketer and distributor of the project’s end product prawns and produce.

 

APT is a self-contained water treatment and recirculating aquaculture system for the growing of aquatic animals on a commercial scale.  CA holds the master license for this technology in China.

 

Sino Agro Food CEO Solomon Lee commented, “I am very pleased and gratified to make this announcement today.  The license agreement represents a culmination and a beginning at the same time.  It validates our technology and the success of our current indoor fish and prawn farms, which, in a sense, have served as demonstration farms.  The agreement is a major marker in the Company’s growth and stature. I look forward to reporting more details as further approvals materialize, and project activities progress.”

 

For more information on the A-Power Technology license agreement between CA and GODL, refer to the most recent 8-K for the Sino Agro Food, when filed at http://1.usa.gov/1exib8O.

 

For more information on the use of CA’s management and development services for the project, refer to the Joint Venture Agreement at http://bit.ly/OVWu8T.

 

Follow company developments on Facebook at www.facebook.com/SinoAgroFoodInc.

 

Information: Peter Grossman, Investor Relations, Sino Agro Food (phone 1-775-901-0344, email info@sinoagrofood.com, webpage http://www.sinoagrofood.com).

 

Source: Sino Agro Food. Inc.  News and Press Releases.  Capital Award Inks License Agreement With a Sino Foreign Joint Venture Company for Long Term 1,300 Acre Prawn and Hydroponic Venture.  March 4, 2014

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