LAS VEGAS, Feb. 5, 2020 /PRNewswire/ -- Pacific Conquest Holdings, Inc. (OTC: PCHK) today announced that it has signed an amendment to its November 2018 cooperation agreement for the planting and harvesting of castor crops in China, as well as a production agreement with a commercial facility for the downstream processing of the castor oil as the first of its several business management projects and acquisitions. PCHK management has calculated that the planting project, which is for a minimum of 5,000 acres and up to 8,200 acres, is expected to generate US$6.5 Million in gross revenue dependent on completion of its fundraising for the planting. Management also projects that the agreement is strongly favorable to the Company since terms dictate a 100% payback of PCHK's initial capital contribution of 400 RMB per Mu. In addition, the partner to our cooperation agreement has agreed to contribute all land for planting free of charge and has guaranteed a minimum harvest of 230kg per Mu for this planting season, for a cost of 300 RMB per Mu. Shares of net profit payable to our partner under the cooperation agreement will be reduced accordingly if the harvest per Mu does not yield agreed minimum harvest results.
PCHK is not responsible for more than RMB400 (US$57.66 as of January 23, 2020) per Mu (666 square meters) of the planting and harvest costs. Upon successful harvest, revenue from the sale of castor seeds will be put into a fund of which PCHK will own 60% of net proceeds, after costs. According to the agreement, if the harvest yield is below 230kg (507 pounds) per Mu, the partner to our cooperative agreement will contribute from their 40% share of the net profit to compensate PCHK for the shortfall.
Pacific Conquest also signed a processing agreement, for the refinement of castor oil with Guangxi province-based Qinzhou Haina Chemical Ltd., which has an annual production capacity of 25,000 tons of castor oil.. Through Qinzhou Haina Chemical, Pacific Conquest has the ability to produce and market castor derivative products to be sold to top state-owned Chinese oil and pharmaceutical companies to service Pacific Conquest's commercial customers throughout the Pacific Rim with various castor derivatives. The processing partner was selected by Pacific Conquest due to their advanced technology and superior workforce, industry know-how, and access to premier national and global partners. Qinzhou Haina Chemical is an exclusive registered supplier to China's top Chinese oil company, which uses castor derivatives to improve the quality of engine oil products and lubricants.
Soil and growing tests for additional castor plantations are also currently underway in other countries, as are on-going negotiations/discussions with potential partners on three continents based on longstanding professional relationships.
About Pacific Conquest Holdings, Inc.
Pacific Conquest Holdings, Inc. ("PCHK") is a business management company that incubates promising companies in select stable growth industries. The principals of PCHK have deep roots and relationships with major Pacific Rim countries and currently have several potential acquisitions in process throughout the region. The castor business is the first of PCHK's subsidiaries being incubated and grown into a complete profit center for the parent company. It is expected that each of the companies PCHK acquires will stand on its own as an independent profit center. While the initial acquisition targets are based in Pacific Rim countries, it is expected that each one will have the potential of expanding its own operations in selected markets globally.
Each PCHK project or acquisition will be independently evaluated based on several factors including:
- The potential of the industry and its international growth markets
- Quality of current management and their vision for growth and market share
- The competitive advantages of the products and/or services rendered by the potential acquisition
Forward-Looking Statements
Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined, and assumptions of management. Forward looking statements are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "aims", "potential", "goal", "objective", "prospective", and similar expressions or that events or conditions "will", "would", "may", "can", "could" or "should" occur.
Actual results may differ materially from those currently anticipated due to a number of factors beyond the reasonable control of the Company. It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include misinterpretation of data, the Company's ability to raise financing for operations, breach by parties with whom we have contracted, and the possible inability to maintain qualified employees or consultants.
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SOURCE Pacific Conquest Holdings, Inc.
