NEW YORK, July 20, 2009 (GLOBE NEWSWIRE) -- 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.
SO, I figure that 197.5mil divided by 7 yrs. = $28.2 mil + $2.1 mil for this yr only or next yr. however you want to interpret when the 2.1 contract begins. In other words, Q4 09' to Q4 10' should yield $30.3mil AS IT STANDS TODAY! By the way, that's Canadian Dollars. WE can only trust that the hiring of all these salesmen will result in extra REV's. I think by now we can assume this to be a safe bet.
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