XML 30 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Subsequent Events
3 Months Ended
Oct. 31, 2011
Subsequent Events  
Subsequent Events [Text Block]

NOTE 12 - SUBSEQUENT EVENTS

 

Supply agreement with Domino Foods, Inc.

 

On December 2, 2011, we signed a supply agreement with Domino Foods, Inc. (“Domino Sugar”) to sell our Reb A 60 and higher grades of stevia. This new supply agreement is effective through December 31, 2012, and will be renewable thereafter from month to month unless terminated by either party upon 30 days notice. The agreement provides that quantities and prices for the stevia ingredients will be included in purchase orders which will include agreed on pricing. Payments will be made on account on a net 30 days basis.

Strategic Plans to dispose of Chinese Medicine Segment

 Currently we are evaluating alternatives as to the potential disposition of the Chinese Medicines segment to further streamline our product offering and focus our business on producing and selling high-quality stevia products. The exit strategy contemplated for the Chinese Medicines segment has also been influenced by our concerns on the profitability of this segment in the near future. The competition in Chinese Medicine market has strengthened over the past few months, causing further reductions in our already low margins in this segment compared to last year. In addition, the Chinese government continues to issue more regulations covering the supply of Chinese herbal raw materials and has increased the regulatory manufacturing standards on this segment. These measures are expected to further increase our purchase cost on raw materials and production cost in the coming quarters and beyond. We will make the final determination on the sale of the Chinese Medicines segment subsidiary during the second half of fiscal year 2012.

Shares issued to CDI for consulting services

 

On November 21, 2011 we issued 500,000 shares of our common stock valued at $181,800 to CDI as consulting expenses pursuant to the agreement dated April 22, 2011. These shares will be recognized as consulting expenses during the six months period ended April 30, 2012.