Pacific Conquest Holdings, Inc. Announces Major Planting and Processing Agreements
February 05, 2020 at 09:15 am EST
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Pacific Conquest Holdings, Inc. (PCHK) 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 USD 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 RMB 400 per Mu. In addition, the partner to the 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 RMB 300 per Mu. Shares of net profit payable to the 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 RMB 400 (USD 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 the 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.
Kaier Inc. is an industrial Internet platform company. The Company's main business is to provide diversified services, such as online sales, transaction settlement, supply chain management, credit support and equity investment for partners in the global agricultural industry chain. The Company has several e-commerce platforms and is establishing operation service centers in ASEAN countries and 31 provinces and regions in China. The Company provides services to attain group customers for banks, to help upstream and downstream enterprises for sizeable companies, to offer credit information support for consumers, and to help the transaction settlements for enterprises through an advanced Basel III risk control management system platform. It also focuses its business on digital technology based on artificial intelligence, advanced algorithms, and Internet of Things (IoT).