>> NEWS GOODIES <<

[GoldDog83]

SANP NEWS

Cathay (SANP) Announces Definitive Agreement to Acquire Tabacalera Café Fuerte
Print
Alert


Ft. Lauderdale, FL -- January 5, 2015 -- InvestorsHub NewsWire -- Santo Mining Corporation also known as Cathay Lifestyle Group Inc., (OTCPINK:SANP), (the "Company"), signed a definitive deal to acquire 50% of Tabacalera Café Fuerte SRL in the Dominican Republic in an all-stock transaction deal. Under the terms of the transaction, Cathay will purchase Tabacalera Café Fuerte 50% stake for 200 million shares of Preferred “C” Class Stock of SANP. Upon completion of the acquisition Cathay will have a foothold in the pre-industry tobacco processing industry in the Dominican Republic to export bulk cured high-grade tobacco to China. The transaction is expected to close by the end of the first quarter of fiscal 2016.

Cathay’s CEO, Franjose Yglesias, commented, “With today’s announcement, we have taken another step in Cathay’s long term growth strategy, which we believe will create increased value for its stakeholders. This transaction will provide Cathay access to participate in the $1.2 billion dollar import Chinese tobacco market for 2016.” Additionally Mr. Yglesias stated “I am excited to announce that Mr. Matthew Arnett will spearhead the export operation of Tabacalera Café Fuerte and I welcome Mr. Juan Carlos Tineo Castro as the new Chief Master Tobacco Blender for Cathay Cigars of Asia Corp. and VP of Tabacalera Café Fuerte.”

Strategic Rationale for Transaction

1.Entry into Chinese high-grade bulk tobacco import market
2.Manufacturing of private label cigars for the Chinese market
3.Margin expansion and growth value to the company
4.Foothold in one of the best tobacco regions in the world

Term of the Agreement
Under the terms of the agreement, Cathay will acquire 50% of Tabacalera Café Fuerte for 200 million shares of Preferred “C” Class Stock of SANP, (subject to certain adjustments). Cathay expects to get a revolving line of credit and is currently in negotiations with some financial institutions. The line of credit will be used for tobacco futures purchase and the development of the private label brand for the Chinese market.

About SANP
Cathay Lifestyle Group Inc., we are a lifestyle brand integration, marketing, design, development, education and consultant for high value sales channel of luxury lifestyle products in the leisure and entertainment sector. We have a diverse portfolio of licensed brands as well as a wide range of product categories. Our partners include, membership clubs, golf clubs, financial services groups, nightclubs, restaurants, lounges, sports bars, KTV’s, Duty Free Stores, e-commerce channels and direct to consumers B2C across Asia. Our services embody the interests, attitudes, and opinions of an elite group of consumers that embrace a particular culture. Our Lifestyle brands seek to inspire, guide, and motivate people, with the goal of our products contributing to the definition of the consumer's way of life. We operate off the ideology that we must attract and connect people and brands to ultimately spur, set and create new social phenomenon’s.

Website: http://www.cathaycigars.com
Email: mailto:[e-mail]
Facebook: http://www.facebook.com/cathaycigars
Twitter: http://www.twitter.com/cathayinvestors

FORWARD LOOKING STATEMENT This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.