BEIJING, May 5 /PRNewswire-Asia-FirstCall/ -- China
Agritech, Inc., (Nasdaq: CAGC) ("China Agritech" or the "Company"),
a leading organic compound fertilizer manufacturer and distributor
in China, announced today that it
has closed its previously announced public offering of 1,243,000
shares of common stock. On April 29,
2010, Rodman & Renshaw, LLC, a subsidiary of Rodman
& Renshaw Capital Group, Inc. (Nasdaq: RODM), acting as the
sole book running manager of the offering, exercised its
over-allotment option to purchase an additional 186,450 shares of
common stock, increasing the size of the offering to an aggregate
of 1,429,450 shares of common stock. Total gross proceeds from the
offering and over-allotment were approximately $23.0 million.
The Company intends 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.
The sale was being made under an effective registration
statement previously filed with and declared effective by the U.S.
Securities and Exchange Commission (the "SEC") on February 25, 2010. A prospectus supplement
related to the offering was filed with the Securities and Exchange
Commission. A copy of the prospectus 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.