DES MOINES, Iowa, March 2, 2017 /PRNewswire/ -- Origin (Origin
Agritech Ltd., NASDAQ: SEED), an agricultural biotechnology trait
and seed provider, announced that it will hold a special meeting of
stockholders in connection with the sale of both the production and
distribution segments of Origin's commercial corn seed assets on
April 13, 2017 at 11:00 a.m.,
United States Central Time, at the Company's office located at The
Financial Center, 666 Walnut Street, Suite #1554, Des Moines, IA 50309.
The Company stockholders of record at the close of business on
February 28, 2017 will be entitled to
receive notice of the special meeting and to vote their shares,
either in person or by proxy, at the shareholder meeting. The proxy
materials will be distributed to stockholders commencing
March 2, 2017.
The transaction is intended to orient the Company as a
multi-national seed development company capitalizing on its
biotechnology assets and employee skills in research and
development. This will allow the Company to focus on strategic
partnerships and licensing opportunities both within China and around the globe to drive future
revenue and profit growth.
As previously announced on September 26,
2016, Origin announced the sale of its proprietary
China-based commercial seed
business for RMB 400 million
(approximately USD$60 million) to
Beijing Shihui Agricultural Development Co, Ltd. ("Beijing
Shihui"). The sale includes both the production and
distribution segments of Origin's commercial corn seed assets. The
Company intends to shift to a licensing model for its biotech
traits and germplasm which will serve as a new revenue growth
opportunity for Origin. Future company revenue is expected to
be generated by charging royalties and license fees for its
superior corn seed inbreds and hybrids as well as for the
commercial use of its biotech seed traits. As part of the
transaction, the Company will retain its corn breeding and biotech
research and development capabilities, which include modern
laboratories, extensive field testing networks and off-season
winter nursery in Hainan Province,
to expand and pursue germplasm and trait licensing opportunities.
Through Xinjiang Originbo Seed Limited, Origin also will maintain
its "Green Pass" status, allowing it the competitive advantage of
introducing new hybrid varieties to the Chinese market through an
expedited government approval process. Origin will also retain its
start-up operations in the United
States.
Origin's shareholders who need assistance in completing the
proxy card or voting instruction form or have questions regarding
the Origin special meeting may contact Origin's proxy solicitors:
The Proxy Advisory Group LLC , 18 East 41st Street, 20th Floor New
York, New York 10017; Phone: (212) 616-2180.
About Origin Agritech Ltd.
Origin Agritech Limited, founded in 1997 and headquartered in
Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is China's leading agricultural biotechnology
company, specializing in crop seed breeding and genetic
improvement, seed production, processing, distribution, and related
technical services. Leading the development of crop seed
biotechnologies, Origin Agritech's phytase corn was the first
transgenic corn to receive the Bio-Safety Certificate from
China's Ministry of Agriculture.
Over the years, Origin has established a robust biotechnology seed
pipeline including products with glyphosate tolerance and pest
resistance (Bt) traits. Origin operates production centers,
processing centers and breeding stations nationwide with sales
centers located in key crop-planting regions. Product lines are
vertically integrated for corn, rice and canola seeds. For further
information, please visit the Company's website at:
http://www.originseed.com.cn or
http://www.originseed.com.cn/en/.
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In this context,
forward-looking statements often address expected future business
and financial performance and financial condition, and often
contain words such as "expect," "anticipate," "intend," "plan,"
"believe," "seek," "see," "will," "would," "target," similar
expressions, and variations or negatives of these words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about the
consummation of the proposed transaction and the anticipated
benefits thereof. Forward-looking statements are not guarantees of
future performance and are based on certain assumptions and
expectations of future events which may not be realized.
Forward-looking statements also involve risks and uncertainties,
many of which are beyond the company's control. Some of the
important factors that could cause the company's actual results to
differ materially from those projected in any such forward-looking
statements are: fluctuations in energy and raw material prices;
failure to develop and market new products and optimally manage
product life cycles; ability to respond to market acceptance,
rules, regulations and policies affecting products based on
biotechnology and, in general, for products for the agriculture
industry; outcome of significant litigation and environmental
matters, including realization of associated indemnification
assets, if any; failure to appropriately manage process safety and
product stewardship issues; changes in laws and regulations or
political conditions; global economic and capital markets
conditions, such as inflation, interest and currency exchange
rates; business or supply disruptions; security threats, such as
acts of sabotage, terrorism or war, natural disasters and weather
events and patterns which could affect demand as well as
availability of products for the agriculture industry; ability to
protect and enforce the company's intellectual property rights; and
successful integration of acquired businesses and separation of
underperforming or non-strategic assets or businesses. The company
undertakes no duty to publicly revise or update any forward-looking
statements as a result of future developments, or new information
or otherwise, should circumstances change, except as otherwise
required by securities and other applicable laws.
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SOURCE Origin Agritech Limited