TORONTO, ONTARIO--(Marketwired - July 29, 2013) - GreenStar Agricultural Corporation (TSX VENTURE:GRE) today announced that the Board of Directors has approved the engagement of Collins Barrow Toronto LLP ("Collins Barrow") to conduct due diligence on the recently announced, proposed acquisition of a Chinese tomato pulp producer. Collins Barrow will be engaged by a Special Committee of the Board formed to oversee the acquisition and is chaired by Bryan Knebel, former CFO of The SKOR Food Group; its members include: Frank Galati, former CFO of Cott Corporation's Food Service Arm, and Managing Director of The Bedford Group, Bob Guo, CEO of Goldenmount Capital, and Michael Newman, former President and CEO of InterRent REIT.
Under the terms of the engagement, Collins Barrow will conduct a review of the financial details of the acquisition target for the past three years, review internally prepared pro-forma projections for the next three years, and report back to the Special Committee of the Board with any concerns regarding the foregoing. The due diligence process is expected to take up to forty-five days, at which point in time the Special Committee will make its recommendation to the Board of Directors, on whether, based on the results of Collins Barrow's due diligence, GreenStar should proceed to closing the transaction expected to take place in the third fiscal quarter.
At the same time, GreenStar announced that it will be releasing its second quarter financial results prior to market open on August 22, 2013.
About Collins Barrow
Recognized as Canada's mid-market leader for audit, tax and advisory solutions, our association of 22 independent member firms comprises the eighth largest public accounting group nationally by revenue. Through our strong network infrastructure, shared expertise, resources and offices from coast to coast, we provide clients ranging in size from large, publicly traded companies to owner-managed and emerging businesses with a full complement of professional services across every major industry sector.
Collins Barrow is an independent member of Baker Tilly International, the world's eighth largest accountancy and business advisory network by combined fee income. Together, we offer clients an established platform and access to the highest quality resources in the global marketplace.
About GreenStar Agricultural
GreenStar 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.
GreenStar has been operating for over 19 years. Through the application of science and technology in production, quality control and assurance, and business operations and management, GreenStar 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.
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.
Caution Regarding Forward-Looking Information:
Certain statements in this press release may constitute ''forward looking'' statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward looking statements.
When used in this press release, such statements may use such words as ''may'', ''will'', ''expect'', ''believe'', ''plan'' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward looking information in this press release includes the special committee's plan to retain Collins Barrow, management's expectations on the work scope and work schedule for Collins Barrow, management's plans for the acquisition of the tomato pulp producer and the expected timing for the acquisition, and the expected timing for the release of second quarter financial results. These forward looking statements involve a number of risks and uncertainties. Some of the factors that could cause actual results to differ materially from those expressed in or underlying such forward looking statements are the effects of, as well as changes in: international, national and local business and economic conditions; political or economic instability in the Company's markets; competition; legislation and governmental regulation; and accounting policies and practices. The foregoing list of factors is not exhaustive. Please see the Company's annual MD&A dated April 25, 2013, available on www.sedar.com, for a more detailed description of the risk factors. The Company undertakes no obligation to update publicly or revise any forward looking information, whether a result of new information, future results or otherwise, except as required by law.