TORONTO, ONTARIO -- (Marketwired) -- 04/22/13 -- China Green Star Agricultural Corporation (TSX VENTURE: GRE) ("Green Star" or the "Corporation") today announced that it has entered into a shareholder loan transaction with Mr. Guan Lianyun ("Mr. Guan") whereby Mr. Guan agreed to loan the Corporation up to C$1.5 million, to fund the ongoing expenses of the Corporation' s Canadian operation. The loan is unsecured, bears no interest and will be payable on April 19, 2016. The Corporation may repay any amount of the principal outstanding or all of the loan without bonus or penalty at any time before April 19, 2016. As at the date of the loan, a total of C$545,916.73 had been advanced by Mr. Guan to the Corporation.
Mr. Guan is the Chairman, Chief Executive Officer and a significant shareholder of Green Star. The loan is therefore a related party transaction. Under Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions, no formal valuation or minority shareholder approval is required as the Corporation is not listed on a specified market and the value of the loan is less than 25% of the Corporation's market capitalization. The independent directors of the Corporation (being all directors other than Mr. Guan) unanimously approved the shareholder loan.
"The establishment of this loan and the funding arrangements resulting from it are important to Green Star and its shareholders, as the Corporation's North American operations grow, which include implementation of the Corporation's previously announced dividend policy. Green Star's board of directors and shareholders thank Mr. Guan for making this financing arrangement", commented Mr. Bryan Knebel, Director and Chairman of Green Star's Audit Committee.
About China Green Star Agricultural Corporation
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 processing of canned food, which includes canned tomato paste, canned boiled bamboo shoots, canned oranges, canned peaches and various other types of fruits and vegetables.
Green Star has been operating for over 18 years. Through the application of science and technology in production, quality control and assurance, and business operations and management, Green Star has focused on maintaining product and reputational excellence with a high standard of food quality. 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 further information on Green Star please visit our web site at www.greenstaragricultural.com.
Neither the 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 news release.
China Green Star Agricultural Corporation:
(416) 849 3858
Investor Cubed Inc.:
(647) 258-3311 or (888) 258-3323
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