BEIJING, April 28 /PRNewswire-Asia-FirstCall/ -- China
Agritech, Inc., (Nasdaq: CAGC) ("China Agritech" or the "Company"),
a leading organic compound fertilizer manufacturer and distributor
in China, today announced the
pricing of a public offering of 1,243,000 shares of its common
stock at a price of $16.10 per share.
The Company has granted the underwriters a 45-day option to
purchase up to an additional 186,450 shares to cover
over-allotments, if any. The offering is expected to close on
May 4, 2010, subject to customary
closing conditions.
The Company will receive aggregate net proceeds of approximately
$18.3 million after deducting
underwriting discounts and commissions and estimated offering
expenses payable by the Company, not including the over-allotment
option. The Company expects to use the net proceeds from this
offering to establish branded large-scale distribution centers and
the remainder of the net proceeds, if any, for working capital and
general corporate purposes. These centers will enable the Company
to sell its organic fertilizers and third party sourced products,
including seeds, pesticides, and other agricultural products to
franchised retail stores initially anticipated to be owned and
operated by the current distributors of the Company's products.
Rodman & Renshaw, LLC, a subsidiary of Rodman & Renshaw
Capital Group, Inc. (Nasdaq: RODM), is acting as sole book running
manager for the offering.
The shares are being sold under the Company's existing shelf
registration statement on form S-3 (File No. 333-164810) which was
declared effective by the Securities and Exchange Commission (the
"SEC") on February 25, 2010. Any
offer of the shares will be made exclusively by means of a base
prospectus, and a prospectus supplement filed with the SEC. When
available, the base prospectus and final prospectus supplement
relating to the offering may be obtained by visiting EDGAR on the
SEC Website at http://www.sec.gov or upon request from Rodman &
Renshaw, LLC, 1251 Avenue of the Americas, New York, NY 10020, 212-430-1710 or email:
info@rodm.com.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any of the securities, nor shall
there be any sale of these securities in any state or jurisdiction
in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any
such state or jurisdiction.
About China Agritech, Inc.
China Agritech, Inc. is engaged in the development, manufacture
and distribution of liquid and granular organic compound
fertilizers and related products in China. The Company has developed proprietary
formulas that provide a continuous supply of high-quality
agricultural products while maintaining soil fertility. The Company
sells its products to farmers located in 28 provinces of
China.
Safe Harbor Statement
This press release contains certain statements that may be
deemed to be "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, that address
activities, events or developments that the Company expects,
projects, believes or anticipates will or may occur in the future,
including, without limitation, statements about its business or
growth strategy, general industry conditions, future operating
results of the Company, capital expenditures, expansion and growth
opportunities, financing activities and other such matters, are
forward-looking statements. Although the Company believes that its
expectations stated in this press release are based on reasonable
assumptions, actual results may differ from those projected in the
forward-looking statements.
For more information, please contact:
In China:
Mr. Gareth Tang
Chief Financial Officer
China Agritech, Inc.
Email: gareth@chinaagritech.com
In the U.S.:
Mr. Kevin Theiss
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@grayling.com
SOURCE China Agritech, Inc.