China Agritech, Inc. to Acquire Remaining Interests in Pacific Dragon Fertilizer Co., Ltd.
February 17 2009 - 7:52AM
PR Newswire (US)
BEIJING, Feb. 17 /PRNewswire-Asia-FirstCall/ -- China Agritech,
Inc. (OTC:CAGC) (BULLETIN BOARD: CAGC) ("CAGC" or "the Company"), a
leading national-level liquid organic compound fertilizer
manufacturer and distributor in China, today announced that its
wholly owned subsidiary, Tailong Holding Company Limited
('Tailong'), recently signed definitive agreements to purchase the
remaining 10% equity interest in Pacific Dragon Fertilizer Co.,
Ltd. ('Pacific Dragon'). The total consideration is $7.98 million,
as determined by the accounting firm KPMG using the fair-value
evaluation method. Subject to the Chinese government approval, the
transaction is expected to close on or before March 31, 2009.
Pursuant to the agreement, which has been unanimously approved by
the boards of directors of Tailong, Pacific Dragon and the Company,
Tailong, which already owns 90% of Pacific Dragon, will pay $1
million in cash and the remaining $6.98 million in an interest-free
promissory note with a maturity date of December 31, 2009. The
transaction will make Pacific Dragon, a manufacturer, marketer and
distributor of a series of organic liquid compound fertilizers in
China, a wholly owned subsidiary of Tailong. In addition, the
transaction is expected to increase the Company's 2009 after-tax
earnings by approximately $0.05 per share. About China Agritech,
Inc. China Agritech, Inc. is engaged in the development,
manufacturing 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 26
provinces of China. For more information about the Company, please
visit http://www.chinaagritechinc.com/ Safe Harbor Statement This
release contains certain "forward-looking statements" relating to
the business of China Agritech and its subsidiary companies, which
can be identified by the use of forward-looking terminology such as
"believes, expects" or similar expressions, including but not
limited to, statements regarding the continued demand for China
Agritech's products, China Agritech's ability to sustain growth for
the balance of the year and China Agritech's ability to generally
meet all of its objectives. Such forward-looking statements involve
known and unknown risks and uncertainties, including all business
uncertainties relating to product development, marketing,
concentration in a single customer, raw material costs, market
acceptance, future capital requirements, and competition in general
and other factors that may cause actual results to be materially
different from those described herein as anticipated, believed,
estimated or expected. Certain of these risks and uncertainties are
or will be described in greater detail in our filings with the SEC.
Except as required by law, China Agritech is under no obligation to
(and expressly disclaims any such obligation to) update or alter
its forward-looking statements whether as a result of new
information, future events or otherwise. For more information,
please contact: In China: Mr. Kelviz Lim Kok Siak Investor
Relations China Agritech, Inc. Tel: +86-10-5962-1220 Email: In the
U.S.: Mr. Kevin Theiss / Mr. Valentine Ding Investor Relations
Grayling Tel: +1-646-284-9409 Email: / DATASOURCE: China Agritech,
Inc. CONTACT: In China: Mr. Kelviz Lim Kok Siak, Investor
Relations, China Agritech, Inc., +86-10-5962-1220, ; or In the
U.S.: Mr. Kevin Theiss, , or Mr. Valentine Ding, , both Investor
Relations, Grayling, +1-646-284-9409 Web site:
http://www.chinaagritechinc.com/
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