WUHAN, China, Sept. 30, 2013 /PRNewswire/ -- Tianli
Agritech, Inc. (NASDAQ:OINK) ("Tianli" or the "Company"), a leading
producer of breeder hogs, market hogs and black hogs, headquartered
in Wuhan City, China, today announced that the Company has
agreed to sell 2,760,000 shares of its common stock at a price of
$1.16 per share ($3.2 million in the aggregate) to Mr.
Wei Gong (the "Investor"), a citizen
of the PRC. The offering price represents an approximately 43%
premium over Tianli's share price at last Friday's market close of
$0.81.
To comply with Nasdaq Marketplace Rule 5635(d) which limits the
number of shares of the Company's common stock that can be sold in
a private placement to no more than 20% of the 11,194,000 shares
outstanding, subject to certain exceptions as provided in the
Nasdaq Marketplace Rules, the Company sold 2,238,000 shares of its
common stock to the Investor for a total consideration of
$2,596,080 on September 28, 2013. The balance, 522,000 shares
with a total consideration of $605,520, is expected to be completed within
three days after the first to occur of (1) the receipt by the
Company from Nasdaq of an acknowledgement that it is exempt from
Marketplace Rule 5635(d) or (ii) the receipt by the Company of a
vote of its shareholders approving the sale by the Company to the
Investor of a number of shares greater than 20% of the shares
currently outstanding.
Mrs. Hanying Li, Chairwoman and
CEO of Tianli Agritech commented, "We are very pleased to welcome
Mr. Wei Gong to be a substantial
shareholder of Tianli and appreciate the support of our new and
existing investors. As a prominent investor, a prolific author, and
one of the pioneers of incubation centers in China, Mr. Gong currently serves as the
Director of Wuhan East Lake Hi-tech Innovation Center, a position
he has been holding since 1987. We believe the value of having Mr.
Gong as our substantial shareholder is both financial and strategic
and expect to benefit tremendously from Mr. Gong's involvement in
our business."
Mr. Wei Gong stated, "We believe
China's continuing transition from
export- and investment- driven growth to domestic
consumption-driven growth bodes well for the hog
industry. With its well established market position, steadily
growing Black Hog Program in Enshi Prefecture, and quickly
expanding retail presence, in our view Tianli is well positioned to
further strengthen its leading market position in the Wuhan market and take full advantage of the
growing trend in pork consumption in China. With the stock trading at just 0.2x of
its book value, we are thrilled to have the opportunity to take a
large position in the Company at a very reasonable price. We look
forward to a mutually beneficial relationship with Mrs. Li and the
Tianli team for many years to come."
About Tianli Agritech, Inc.
Tianli Agritech, Inc. is in the business of breeding, raising
and selling breeder and market hogs in China and is developing a retail channel for
its pork products including high-value, black hog meat. The Company
is focused on growing high quality hogs for sale for breeding and
meat purposes. The Company conducts genetic, breeding and nutrition
research to steadily improve its production capabilities.
Forward-Looking Statements
This news release contains forward-looking statements as defined
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include statements concerning plans,
objectives, goals, strategies, future events or performance, and
underlying assumptions and other statements that are other than
statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and
service demand and acceptance, changes in technology, economic
conditions, the impact of competition and pricing, government
regulation, and other risks contained in reports filed by the
company with the Securities and Exchange Commission. All such
forward-looking statements, whether written or oral, and whether
made by or on behalf of the company, are expressly qualified by
this cautionary statement and any other cautionary statements which
may accompany the forward-looking statements. In addition, the
company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date
hereof.
For more information, please contact:
Tina Xiao
Weitian Group LLC
Phone: +1-917-609-0333
Email: tina.xiao@weitian-ir.com
Web: http://www.weitian-ir.com
SOURCE Tianli Agritech, Inc.