BEIJING, June 29 /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 that it
has received $10 million as a result
of the exercise of common stock warrants held by Carlyle Asia
Growth Partners IV, L.P. and CAGP IV Co-Investment, L.P., two
affiliates of The Carlyle Group. The Carlyle Group affiliates
originally acquired the warrants in connection with the Company's
strategic private placement, consummated on October 20, 2009. A total of 1,857,024 newly
issued shares of the Company's common stock were issued from the
warrant exercise. Carlyle Asia Growth Partners IV, L.P. and CAGP IV
Co-Investment, L.P., received 1,705,249 shares and 151,775 shares,
respectively, as a result of their exercise of the warrants.
Mr. Yu Chang, Chairman and Chief
Executive Officer of China Agritech, commented, "We are pleased
that The Carlyle Group has increased its investment in and
commitment to China Agritech. This investment will immediately
provide better visibility to our financial statements, as there
will no longer be non-cash charges related to these warrants that
will affect our earnings. With the new proceeds to further
strengthen our balance sheet, we have ample capital to support our
ongoing operations and execute our current expansion plans,
especially to begin the ramp up of our distribution network in
China. We look forward to
extending our growth track record and maximizing value to our
long-term shareholders."
Mr. Wayne Tsou, Managing
Director, Carlyle Asia Growth Partners, commented, "We are
encouraged by the Company's current operations and future outlook.
Carlyle always has been active in investing globally in
technologies and companies focused on sustainable development. We
intend to continue to provide resources and assistance to help
China Agritech achieve its strategic goals and expand in the
Chinese agricultural market."
The Carlyle Group is a global alternative asset manager with
$90.5 billion of assets under
management committed to 67 funds as of March
31, 2010. Carlyle invests across three asset classes --
private equity, real estate and credit alternatives -- in
Africa, Asia, Australia, Europe, North
America and South America
focusing on aerospace & defense, automotive &
transportation, consumer & retail, energy & power,
financial services, healthcare, industrial, infrastructure,
technology & business services and telecommunications &
media. Since 1987, the firm has invested $60.6 billion of equity in 969 transactions. The
Carlyle Group employs more than 880 people in 19 countries. In the
aggregate, Carlyle portfolio companies have more than $84 billion in revenue and employ more than
398,000 people around the world. http://www.carlyle.com .
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, and the
Private Securities Litigation Reform Act of 1995. 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. 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 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. Gareth Tang
Chief Financial Officer
China Agritech, Inc.
Tel: +86-10-5962-1220
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.