March 5, 2014
Capital Award signs Sino Foreign Joint Venture agreement for prawn, agriculture centre
Capita Award, Inc., 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), who has signed a Sino Foreign Joint Venture (SFJV) agreement with a group of business partners in Zhongshan City, Guangdong Province, PRC.
Sino Agro Food, Inc. is an integrated, diversified agriculture technology and organic food company with principal operations in the People's Republic of China.
Pursuant to the SFJV agreement, a Sino Foreign Joint Venture Company will be incorporated to develop an 8,000 MU prawn and agriculture centre in Zhongshan. Hong Kong law governs the license agreement.
The SFJV agreement specifies that one of the responsibilities of GODL thereunder is to "procure and secure the services of Capital Award, Inc. as the master consulting and servicing provider and management of the Project and its developed operations, to be in charge of all affairs of the Project using the said technology to develop the Project."
In accordance with the agreement, as GODL fulfils 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 US$149.6 million, consisting of US$104.3 million from construction and development, and US$45.3 million from consulting, including US$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 an engineered, 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 chief executive officer 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 materialise, and project activities progress."