VANCOUVER, British Columbia--(BUSINESS WIRE)--June 11, 2002--This news release is in response to a CBC News report that a late frost has devastated the crops of some ginseng farmers in southern Ontario, threatening to put some in the ginseng industry out of business. The news report included quotes from ginseng growers which said, "This is definitely the biggest disaster we've ever seen in this business," said farmer Ken Spriet. "I'd characterize it as a disaster of unprecedented scale, actually," he said. "This will have a cascading effect for at least a dozen years because every year of plantation production is part of a cycle which takes three to four years to complete."
Imperial Ginseng Products Ltd. (the "Company" or "Imperial") (OTCBB:IGPFF) (TSX VENTURE:IGP) reports that the recent frost which reportedly did devastating and unprecedented damage to Ontario ginseng farms, has only marginally impacted the Company's gardens in southern Ontario. While the Company is still evaluating the extent of the frost damage to its gardens the initial assessment is believed to be minimal.
Imperial has been following a policy to seed in well-selected and geographically diversified locations in southern Ontario to minimize its exposure to agricultural risks. To protect against excess soil moisture and frost, most of Imperial's gardens have been planted on well-drained soils which are found predominantly on high ground. Frost tends to settle in on low lying ground, therefore Imperial's gardens were less susceptible to frost attack. This, combined with heavy mulch coverage has protected most of the Company's gardens, particularly the one-year-old gardens, from extended frost damage.
The Company's ability to generate sufficient cash flow to carry out its planned seeding and harvesting operations is not expected to be adversely affected by the frost.
This press release may contain forward-looking statements that reflect the Company's current expectation regarding future events. The forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including, but not limited to the success of the Company's horticultural operations and the strength of the economies and currencies of Asian countries. Investors should consult the Company's ongoing quarterly filings, annual reports and Form 20-F for additional information on risks and uncertainties relating to the forward-looking statements. The corporation disclaims any obligations to update these forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
ON BEHALF OF THE BOARD OF DIRECTORS OF IMPERIAL GINSENG PRODUCTS LTD.
James S. Chang, MA, MBA, CPA, President and Chief Executive Officer