Stevia Corp. targeting significant revenue growth during calender-year 2013 provided company achieves 'certain capital requirements,' president says
October 17, 2012
– Stevia Corp. (OTCQB: STEV) ("Stevia Corp" or the "Company"), a farm management company focused on the economic development of stevia, the fastest growing product in the alternative sweetener sector, is pleased to announce the successful launch of its commercialization phase and expects to report revenue for the quarter ended September 30, 2012.
Following a private placement financing with institutional investors on August 1, 2012, Stevia Corp. immediately began to commercialize its proprietary stevia formulations including preparations actively used in feed and fertilizer applications.
The commercialization effort is managed by the Company's subsidiary Stevia Technew Limited and the formulations are initially being applied to aquaculture operations managed by Tech-New Bio-Technology ("TechNew") and its affiliates. TechNew was founded by Mr. Zhang Ji (Jacky) in 2008 and currently services more than 200 aquaculture farms in China. Operations include facilitation of 225 acres of prawn farms and responsibility for 10,000 acres of mixed aquaculture in Guangdong Province. Mr. Zhang Ji is also the Vice Chairman of the Guangzhou Aquaculture Association and the Chairman of the Panyu Aquaculture Association (the largest member association in Guangzhou). He also manages 2,000 greenhouses in Shanghai and aims to work with his numerous business affiliates and personal relationships in an effort to increase the visibility of Stevia Technew in order to aid the provision of technical advice and assistance for the company's contract farming that utilizes stevia formulations.
The Company is commercializing its proprietary formulations utilizing a revenue share model which is a variation of the contract farming model. Under the revenue share model the grower has their own established market for their crop and Stevia Corp. provides farm management services and inputs such as proprietary feed or fertilizer for a share of the revenue. This model is utilized under conditions where an existing business has a proven track record and Stevia Corp. can enhance yield and margins by contributing its services and inputs.
The revenue share model allows Stevia Corp. to quickly scale its business on the backs of existing and proven operations providing a quicker path to breakeven operations with significantly less upfront investment capital and risk.
George Blankenbaker, Stevia Corp. President, comments, "Our commercialization plans have gotten off to a good start with projected third quarter revenues signifying another major milestone effectively met ahead of schedule. Given the opportunities presented by our partners, and the scope of their operations combined with the proposed plans to scale our business model, we are targeting significant revenue growth during calendar year 2013 provided we achieve certain capital requirements."
Further details of the Company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's ("SEC") EDGAR database. For more information visit: www.steviacorp.us.
About Stevia Corp. (OTCQB: STEV)
Stevia Corp. is a farm management company focused on best practice agronomic competency in order to deliver high-value stevia through proprietary plant breeding, excellent agricultural methodologies and innovative post-harvest techniques. To date, the Company has acquired two grower supply contracts and three nursery fields in Vietnam. For more information visit: www.steviacorp.us.
About the Stevia Industry Sector
Within two years of the USA market opening, Nielsen-based retail consumption data indicated almost $1 billion of retail sales for the sector. In 2010, stevia products were launched across thirty-five countries and in 38 categories. Zenith International estimates worldwide sales of stevia extract reached 3,500 tons in 2010 with an overall market value of $285 million and forecasts the global market for stevia will reach 11,000 tons by 2014 requiring the tripling of stevia leaf production at the farm level to keep pace with consumer demand. For more information visit: www.steviacorp.us.