NEW YORK, Nov. 2, 2006 (PRIMEZONE) -- Wallace Mountain Resources Corp. (OTCBB:WMTN) announced that it had entered into and closed two simultaneous share purchase agreements with Nanchang Best Animal Husbandry Co., Ltd. and Shanghai Best Animal Husbandry Co., Ltd., both corporations formed under the laws of the People's Republic of China and their respective shareholders on October 31, 2006. Pursuant to the share purchase agreements, Wallace Mountain has agreed to issue to the Nanchang Best and Shanghai Best shareholders 6,400,000 restricted shares of common stock in exchange for all of the issued and outstanding shares of Nanchang Best and Shanghai Best.
In addition, Robert Gelfand, the current president of Wallace Mountain, has returned 2,600,000 shares of common stock to the treasury, and the shares will be cancelled. Mr. Gelfand was not compensated in any way for the cancellation of his shares of Wallace Mountain Common Stock. Pursuant to the share purchase agreements, Wallace Mountain will, upon receipt of the appropriate regulatory approval, change its name to AgFeed Industries, Inc. to reflect its business, change its ticker symbol and issue a stock dividend of 2 shares for each share currently outstanding.
Nanchang Best Animal Husbandry Co., Ltd. and Shanghai Best Animal Husbandry Co., Ltd. are both in the business of manufacturing and selling animal feed for the animal husbandry markets in the eastern regions of China, including sales of products to large swine farms and distributors. The companies manufacture pre-mix fodder and blended feeds primarily for swine, and are among the top producers of such products in their respective regions in Jiangxi province and Shanghai City.
This press release may contain certain forward-looking information and statements concerning the company's operations, performance and financial condition, including, in particular, the likelihood of the company's success in closing the agreements and plan of merger with Wallace Mountain Resources Corp. These statements are based upon a number of uncertainties and contingencies, many of which are beyond the control of the company. Actual results may differ materially from those expressed or implied by such forward-looking statements. This document is not intended to be and is not an advertisement for any securities of the company.