China Agritech Announces the Closing of a $15 Million Private Placement Financing
July 06 2007 - 9:30AM
PR Newswire (US)
BEIJING, July 6 /Xinhua-PRNewswire-FirstCall/ -- China Agritech,
Inc., a Delaware corporation, (OTC:CAGC) (BULLETIN BOARD: CAGC)
("China Agritech"), a leading liquid fertilizer manufacturer in
China, announced that it has successfully closed with certain
accredited investors the private placement of 5,556,000 shares of
common stock at a purchase price of $2.70 per share, for gross
proceeds of approximately $15.0 million. The proceeds will be used
to add organic granular fertilizer to its product lines and
construct a granular fertilizer line in each of its new factories,
located in Hebei, Anhui, Chongqing and Xinjiang. Roth Capital
Partners, LLC acted as the placement agent for this transaction.
"We would like to express our appreciation to our investors for
their support and confidence in China Agritech. With this
additional financing we are in the position to expand our product
offerings by adding organic granular fertilizer which should help
strengthen our position as a leading brand of organic fertilizer in
China and enhance our ability to grow both our revenues and net
income," commented Mr. Yu Chang, Chairman, President and CEO of
China Agritech. For more detailed information on the financing
referred to in this release, reference is made to the Company's
Form 8-K filing with the Securities and Exchange Commission and
related Exhibits thereto. The common stock referred to in this
release has not been registered under the Securities Act of 1933
and may not be subsequently offered or sold by investors in the
United States, except pursuant to an effective registration
statement or an applicable exemption from the registration
requirement. The company has agreed to file a registration
statement covering resale of the common stock by investors as well
as shares of the company's common stock sold to investors in other
financings. This press release does not constitute an offer to sell
or the solicitation of an offer to buy any security and shall not
constitute an offer, solicitation or sale of any securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of such jurisdiction. About China Agritech Inc.
China Agritech is headquartered in Beijing, China and is engaged in
the development, manufacturing, sale and distribution of organic
liquid compound fertilizers and related products in the People's
Republic of China. The company has developed proprietary formulas
that provide a continuous supply of high-quality agricultural
products while maintaining soil fertility. The company sells it
products to farmers located in twelve provinces of China including:
Heilongjiang, Hebei, Liaoning, Jilin, Shandong, Inner Mongolia,
Henan, Sichuan, Guangdong, Xinjiang, Yunnan and Guizhou. For more
information, visit http://www.chinaagritechinc.com/ . Safe Harbor
Statement The statements contained in this Release that are not
purely historical are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934 and are made in reliance on the
safe harbor provisions contained therein. Such forward-looking
statements include, without limitation, statements regarding the
Company's expectations, hopes, beliefs, intentions or strategies
regarding the future. These forward-looking statements are based on
the Company's current expectations and beliefs concerning future
developments and their potential effects on the Company. There can
be no assurance that future developments affecting the Company will
be those anticipated by the Company. These forward-looking
statements involve a number of risks, uncertainties (some of which
are beyond the control of the Company) or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by such forward-looking statements
such as the inability to protect the proprietary formula, the price
of raw materials, any liabilities from unknown harmful effects of
the product, and adverse weather conditions and other important
factors described in the Company's Form 10-K for the fiscal year
ended December 31, 2006 in the section entitled "Risk Factors". The
Company undertakes no obligation and does not intend to publicly
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
may be required under applicable securities laws. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. For more
information, please contact: CCG Elite Investor Relations Crocker
Coulson, President Leslie J. Richardson Tel: 310-231-8600 Email:
DATASOURCE: China Agritech, Inc. CONTACT: Crocker Coulson,
President of CCG Elite Investor Relations, 310-231-8600, or ;
Leslie J. Richardson of CCG Elite Investor Relations, 310-231-8600,
or
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