VenCapFinancial's Current Recommendations

1) Maple Leaf Reforestation Inc

Maple Leaf Reforestation Inc.

Maple Leaf Reforestation Inc.

  • Stock Symbol: MPE (TSX venture exchange)
  • Shares Outstanding 61,586,627
  • Ever High $1.50 - Ever Low $0.08
Maple Leaf Reforestation is a 100% owned Canadian company operating in mainland China. China's emerging market economy is expected to grow by 8% in 2010 compared to projected growth rates of 2.5% in North America. The opportunities are immense in China. China's economy is expected to be equal in size to the U.S. economy by year 2020. Maple Leaf has very good ties to and a strong working relationship with the Chinese government and will participate in China's growth. Canada and China should see increasingly improved economic relations in the next few years. The Company's operations address two critical issues facing China:
  1. The environment
  2. Feeding China's 1.3 billion people
The Environment

China is facing a major crisis called "desertification" brought about by agricultural over production, over-urbanization and lack of controls and deforestation of native forest lands. One quarter of China is now desert and a massive reforestation program in excess of US.$84 billion is planned over the next several years.

The problem is becoming so bad that Beijing, the Chinese capital city, is being threatened by encroaching deserts that are now less than 150 miles away. Sand storms are getting so bad that pedestrians must take shelter because they can't breathe and traffic is held up as thick dust reduces visibility.

Maple Leaf has built and is expanding extensive greenhouse facilities and is growing varietal tree seedlings to replant areas in China which have turned into desert. The Company is one out of three of one hundred company applicants to receive an initial government grant for its "fertilizer" operations. Maple Leaf is now applying for a much larger grant for its "desertification" operations.

The Company's main contract, the Huahai contract, is to produce Blue Spruce and varietal types of Canadian seedlings for a total value of $1.56 million. Along with various other contracts, with an aggregate value of $1 million, Maple Leaf's total nursery contracts are about $2.5 million.

The Company has also signed a letter of intent to develop White Bark Pine Trees with a large Chinese company, Astro-Wood Bio-Engineering of Shanxi, for a total value of $950,000 which could increase to $5.7 million annually.

The Company is also pursuing a renewable energy project. China offers several competitive advantages including China's low labor costs, abundant feed stock supply and China's huge market demand for bio-fuel. Air pollution is a major issue for China which the country must address immediately. Non polluting bio-fuel will help mitigate this major problem.

Animal Feed and Organic Fertilizer Projects

Maple Leaf makes animal feed out of alfalfa cakes.This project is in cash flow. Maple Leaf is in the process of acquiring the assets of Funong Alfalfa Feed Stock Supply Ltd. Total revenue from alfalfa sales will be about $3 million per year.

The Company's organic fertilizer operations are also earning revenue. However, these could be greatly augmented. Total revenues could be $4.2 million within two years.

Agricultural products will see unlimited demand in China. Most analysts are projecting the agricultural industry sector to see major growth around the world.

Management

  • Raymond Lai-President and CEO, CMA, B.Com is a Chinese national with strong ties to China's middle management hierarchy, the officials responsible for allocating government contracts.
  • Bill McKnight-Director, is a former 14-year Member of Parliament in the Conservative Government of Canada and was an adviser to the Governor of Ningxia, Hui in China.
  • Chen Zhen-Vice President and Legal Representative of Xinjiang Operations. Ms. Chen has many years of working experience in the Ministry of Agriculture of the PRC.
  • Li Yihui-Vice President and General Manager of the Fertilizer Industry of Hunan has many years experience in the management of government projects.
2) eCrypt Technologies, Inc.

eCrypt logo

eCrypt Technologies Inc. (BB.ECRY) www.eCryptinc.com shares outstanding 132 million, restricted 100 million, tightly held 32 million.

eCrypt is an alliance member of Research in Motion (RIM), the largest Canadian company by cap value, and the producer of the most popular smartphone in the world, the BlackBerry, used by Barak Obama. RIM is the fastest growing company in the world.

eCrypt provides easy to use, stand alone, true end-to-end (phone to phone) encryption software to BlackBerry smartphone users. More information about eCrypt can be found online at: www.eCryptinc.com, www.YourPrivacyIsOurBusiness.com and www.YouTube.com/user/eCryptinc.

Smartphone emailing has become the primary way of conveying everything from banking information, and business activities, to casual communication of schedules and whereabouts. Without an encryption software like eCrypt protecting the confidentiality of communications your finances, family, and private life are put at risk, and your information and business dealings are exposed to unauthorized access and exploitation by cyber criminals.

eCrypt eliminates all these vulnerabilities for a one time fee of about $24.99, and is also available on a PayPerUse basis.

Cybercrime has surpassed illegal drug trafficking as a criminal money maker, and every 3 seconds someone's identity is stolen online. Currently there is 1 known hacker for every 15 smartphone users.

There are many free secure email services available but they are managed by the third party service providers who have unrestricted access to client information in plain text.

eCrypt has very strong competitive advantages. An alliance with RIM, a $50 billion company, means that eCrypt has access to RIM's immense development resources, joint marketing opportunities and access to RIM's vast alliance network, including the world's largest service providers such as AT&T and Vodafone in Europe.

Encryption is heavily regulated like nuclear technology. eCrypt retained the best technology and encryption law firm in the world, Steptoe & Johnson, which has secured a Mass Market status for eCrypt software, a status that enables eCrypt to export and re-export the software globally without having to apply for additional permission.

Through Certicom, a company recently acquired by RIM, eCrypt has licensed use of the strongest encryption algorithms available for the BlackBerry smartphone operating system.

eCrypt is on the verge of becoming a large tech company. Conservative cash flow projections estimate that by year 2013, eCrypt software sales to BlackBerry users alone will be about $1.5 billion based on a penetration rate of only 1.9% of BlackBerry's market share.

eCrypt software can also be applied in corporate environments within special groups such as HR and C-level personnel to help reduce organizational espionage, and information leaks, at a fraction of the cost of traditional encryption solutions.

eCrypt does not have an exclusivity agreement with RIM, and plans to commence development of solutions for other popular smartphone operating systems in the near future.

eCrypt is poised to become the encryption software for the world.