China Organic Agriculture, Inc. Completes Acquisition of Changbai Eco-Beverage, a Blueberry Product Producer
March 23 2010 - 6:25PM
Business Wire
China Organic Agriculture, Inc. (OTCBB: CNOA) (“China Organic
Agriculture” or the “Company”), a company headquartered in the
Liaoning Province in China engaged in the trading and distribution
of agricultural products, today announced that it has completed
acquiring 60% of the stock of Changbai Eco-Beverage Co., Ltd.
(“Changbai”) for RMB70 million ($10.25 million).
Located in the Liaoning Province in China, Changbai is mainly
engaged in the research, production and sale of various natural
products including blueberry drinks, blueberry health care
products, and bee products to meet the increasingly market demands
in China for these goods. The Chinese economy's dramatic rise in
the disposable income has increased the demand for "green foods"
such as those provided by Changbai.
Founded in May 2008, Changbai estimates that it achieved a net
income of approximately RMB15 million in 2009. With the strong
demand for its products, Changbai plans to expand its blueberry
distribution on a national basis, thus increasing its market share
in the Chinese blueberry segment, and its recognition as a quality
producer of organically friendly products.
As a result of becoming a part of the China Organic
Agriculture’s family, Changbai will be able to more quickly expand
both its distribution and its product mix in China’s expanding
blueberry market. By utilizing the Company’s existing distribution
network, Changbai will be able to do this while benefiting its
distribution efficiencies and overall profitability.
About China Organic Agriculture
China Organic Agriculture is based in China and is primarily
engaged in the acquisition, trading and distribution of
agricultural products. For more information, please visit:
http://www.chinaorganicagriculture.com.
FORWARD-LOOKING STATEMENTS: Except for historical information,
this press release contains forward-looking statements which
reflect the China Organic Agriculture's current expectations
regarding future events. These forward- looking statements involve
risks and uncertainties, which may cause actual results to differ
materially from those statements. Those risks and uncertainties
include, but are not limited to, changing market conditions and
other risks detailed from time to time in China Organic
Agriculture's ongoing quarterly filings and annual reports. We
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. In light of these risks, uncertainties
and assumptions, the forward-looking events in this press release
might not occur.
Forward-looking statements include, but are not limited to,
statements concerning future acquisitions, including the
acquisition of Changbai, estimates of, and increases in,
production, cash flows and values, statements relating to the
continued advancement of China Organic Agriculture's products and
other statements which are not historical facts. When used in this
document, words such as "could," "plan," "estimate," "expect,"
"intend," "may," and similar expressions denote forward-looking
statements. Although China Organic Agriculture Inc. believes that
its expectations reflected in these forward-looking statements are
reasonable, such statements involve risks and uncertainties and no
assurance can be given that actual results will be consistent with
these forward-looking statements. Important factors that could
cause actual results to differ from these forward-looking
statements include, but are not limited to, those set forth in our
reports filed with the Securities and Exchange Commission, together
with the risks discussed in our press releases and other
communications to shareholders issued by us from time to time, such
as our ability to raise capital as and when required, the
availability of raw products and other supplies, competition, the
costs of goods, government regulations, and political and economic
factors in the People's Republic of China in which our subsidiaries
operate.