AQUI's 197.5million contract will be the smallest contract they signs this year!
AQUAGOLD INTERNATIONAL Announces New Sales Contract for CAD$197.5 Million With Wolong Holding Group in China
7/20/2009 11:53:55 AM - GlobeNewswire
NEW YORK, Jul 20, 2009 (GlobeNewswire via COMTEX News Network) --
AQUAGOLD INTERNATIONAL (Pink Sheets:AQUI) announces the signing of a new sales contract for CAD$197.5 million with the Shanghai Wolong International Business Co., Ltd., an affiliate of the Wolong Holding Group, to be a distributor of AQUAGOLD products in China, Hong Kong, Macao and Taiwan. The new contract expires on April 1, 2016. All orders will be made under irrevocable letters of credit. This contract replaces the prior contract with the same expiry date signed last year with the Wolong Holding Group affiliate Shanghai Xietong International Business Co., Ltd., which was for a lesser amount.
The new contract increased in value because of an increase in the price per bottle of AQUAGOLD and includes an additional increased costs clause to cover the Company on an annual basis for increased costs of raw materials and shipping. According to the new contract, other AQUAGOLD products in addition to the Company's flagship 500 mL bottle may be distributed in the future as the Company introduces them into the market. The contract also provides broad language regarding the development of a closer, long-term cooperative relationship between the two companies to expand AQUAGOLD's business in Asia.
"I think the signing of this new contract represents Wolong's affirmation of the strong operating and strategic relationship with AQUAGOLD," states Domingo M. Silvas, III, CEO, "and that by agreeing to significantly improved terms, Wolong affirms its trust and confidence in our new management team, which comprises original members and the new members that we have brought on board this year. We believe teaming up with such an accomplished commercial group as Wolong will certainly benefit the development of AQUAGOLD and our products in Asia now and for the foreseeable future.
"I believe that the successful delivery of our first container to China, the tremendous success of the AQUAGOLD Superface TV series, and the marketing efforts of our sales and marketing team in China have positively impacted Wolong's faith in our product and our company in China. Further, I think the successful implementation and management of the production side in Canada proved to Wolong our capability of delivering a first-class product in line with their expectations and commitments in the markets that they serve."
Wolong Holding Group was established in 1984 and primarily engages in four lines of business - manufacturing, real estate, international trading of goods, and financial investment. The group comprises four main operating subsidiaries, two of which are publicly traded on the Shanghai stock exchange as Wolong Real Estate Group (SH600173) and Wolong Electric Group (SH600580). The other two are Wolong International Business Co., Ltd., which in turn holds Shanghai Wolong International Business Co., Ltd., and Wolong Finance & Investment. The group comprises a total of more than 25 subsidiaries and affiliated companies, and its trademark is deemed one of the most recognized in China by the National Industrial and Commercial Bureau. Leading products enjoy up to 20% market share, and its trading and financial arms operate business networks in more than 30 countries worldwide. Wolong has built customer and strategic long-term, cooperative relationships with a number of industry leading and fortune 500 companies including Emerson, Bosch, LG, Panasonic, Hitachi, Mitsubishi, Sharp, Huawei, China Telecom and Carrier.
About AQUAGOLD INTERNATIONAL
AQUAGOLD INTERNATIONAL is pursuing its mission to provide premier Canadian spring water products to the world. Its vision is to distribute its products globally and to become a leading distributor of some of the most recognized brands in the market. The company's mission and vision have begun in China with its first bottled water product, AQUAGOLD Premier Canadian Spring Water.
The information in this press release may involve guidance, expectations, beliefs, plans, intentions or strategies regarding the future. Except for historical information contained herein, all such statements included in this press release are forward looking statements and are made by AQUAGOLD INTERNATIONAL, INC. in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934. All forward-looking statements are based upon information currently available. Although Management believes that the expectations reflected in such forward-looking statements are reasonable, it cannot give any assurances that such expectations will prove to have been correct. Actual results may differ materially from those indicated by these statements. Numerous factors could cause or contribute to such differences. The following risk factors, among others, could cause actual results to differ materially from those described in any forward-looking statements. These risks and uncertainties include, but are not limited to, economic conditions, consumer spending, changes in the law or regulations, demand for products and services of the company, the competitive environment within the industry, the economic conditions in the industry and the financial strength of the Company's customers and suppliers. The Company does not undertake any obligation to update such forward-looking statements. Investors are also directed to consider all other risks and uncertainties.
This news release was distributed by GlobeNewswire, www.globenewswire.com
SOURCE: AQUAGOLD INTERNATIONAL
4D Strategies Joe Matuella 561.439.9994 Joe@4Dstrategies.com www.aquagoldinternational.com
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