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News, Articles and Releases
Asconi To Receive $680,000 Compensation
from the Government of Moldova
Monday, November 29, 8:41 am ET
ORLANDO, Fla., Nov. 29 /PRNewswire-FirstCall/ -- Asconi
Corporation (Amex: ACD - News),
an Eastern European producer of wines and spirits, today announced
that the Parliament of the Republic of Moldova introduced an amendment
to the Law On the Grape and Wine N 131-XIII from July 2 1994, in
the form of the paragraph IV, "Government Support to the Grape
Plantations." The paragraph IV stipulates the creation of a
fund within the Budget of the Republic of Moldova, which will subsidize
the new vineyard plantations. The fund resources will be used to
partially compensate companies in the amount of approximately $735
(25,000 lei per hectare -- ~2.8 acres) per each acre of vineyard.
Thus, Asconi Corporation will be receiving approximately $680,000
for 925 acres of vineyards planted earlier this year. The Company
has already received $120,000 towards the whole amount; the entire
amount is expected to be received by the end of the calendar year
2004.
Asconi plans to continue developing its vineyards and anticipates
planting of approximately another 960 acres of vineyards in spring
of 2005. The Company currently owns a total of approximately 3,000
acres of premium land suitable for vineyard development in the central
regions of Moldova. Asconi's long-term strategy remains a step-by-step
planting of vineyards until the quantity of grapes collected from
Company-owned vineyards meets 100% of its annual grape requirements.
Based on Asconi's preliminary estimates, once the Company owns the
source of primary raw material, the average cost per bottle will
decrease by 25 to 35 percent.
About Asconi Corporation
Asconi Corporation (Amex: ACD - News)
is a producer and distributor of wines and spirits in Eastern Europe.
For more information, please visit http://www.asconi.com.
Forward-Looking Statements
Certain statements contained herein constitute "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements are based on
current expectations, estimates and projections about the Company's
industry, management's beliefs and certain assumptions made by management.
Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and are subject to certain
risks, uncertainties and assumptions that are difficult to predict.
Because such statements involve risks and uncertainties, the actual
results and performance of the Company may differ materially from
the results expressed or implied by such forward-looking statements.
Given these uncertainties, readers are cautioned not to place undue
reliance on such forward-looking statements. Unless otherwise required
by law, the Company also disclaims any obligation to update its
view of any such risks or uncertainties or to announce publicly
the result of any revisions to the forward-looking statements made
here; however, readers should review carefully reports of documents
the Company files periodically with the SEC.
Asconi Corporation
Phone: 407 679-9463
Email: info@asconi.com
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