Attached files
| file | filename |
|---|---|
| 8-K - CHINA AGRITECH INC | v163148_8k.htm |
| EX-4.1 - CHINA AGRITECH INC | v163148_ex4-1.htm |
| EX-4.2 - CHINA AGRITECH INC | v163148_ex4-2.htm |
| EX-10.2 - CHINA AGRITECH INC | v163148_ex10-2.htm |
| EX-10.1 - CHINA AGRITECH INC | v163148_ex10-1.htm |
Exhibit
99.1
China
Agritech, Inc. Receives Strategic Investment
From
The Carlyle Group
BEIJING, October 20, 2009 -- China
Agritech, Inc. (NasdaqGM: CAGC) ("China Agritech", or the “Company"), a
leading national organic fertilizer manufacturer and distributor in China, today
announced the signing and closing of a private placement with Carlyle Asia
Growth Partners, the growth capital arm of The Carlyle Group, of 1,392,768
shares of China Agritech common stock and warrants to purchase up to an
additional 928,514 shares of China Agritech common stock for aggregate gross
proceeds of $15 million. As a result of the transaction, The Carlyle
Group, through its affiliates holds approximately 16.5% of the issued and
outstanding China Agritech common stock. In the event that the Company does not
meet a net income target of $11.5 million for fiscal year 2009, The Carlyle
Group affiliates will be issued additional shares of common stock and the
initial warrant exercise price of $10.77 per share will be reduced, thereby
resulting in additional warrant shares being issuable upon exercise of the
warrants. The proceeds from the private placement will be used for business
expansion and working capital purposes.
The
stockholders of China Agritech, acting by majority consent in lieu of a
stockholders’ meeting, approved the transactions contemplated by the securities
purchase agreement, including the issuance of the shares of common stock and the
warrants, as required by Nasdaq Marketplace Rule 5635.
As part
of the securities purchase agreement, The Carlyle Group has the right to appoint
one Director to the Board of Directors and, as a result, the Board of Directors
will be expanded to have six members. The Carlyle Group also has the right to
invest between $5-$10 million in any additional financing by the Company
undertaken during the one-year period commencing on the closing
date.
Mr. Yu Chang, Chairman and Chief
Executive Officer of China Agritech, commented, “This strategic investment by a
prestigious investment firm
like The Carlyle Group, strengthens our shareholder base. We believe their investment is an endorsement of our
strategic plans and
our ability to generate
shareholder value. With the
new financial and global resources from Carlyle, we will be able to accelerate our growth
plans to further
penetrate the large
fertilizer market in China
and strengthen our leadership position in our industry. We look forward to the strategic assistance Carlyle will
provide to help us reach our long-term goals.”
Mr. Wayne Tsou, Managing Director and
Head of Carlyle Asia Growth
Partners, said, “We are
excited to establish a strategic relationship with China Agritech and broaden
our reach to the agricultural industry, one of the
pillar industries of China. Under the leadership of a capable
management team, China
Agritech has built a successful
track record and is poised for accelerated growth in the
years ahead. We are dedicated to providing global resources and expertise to
support China Agritech's further expansion.”
The Carlyle Group is one of the world's
largest private equity
firms, with more than $86.1 billion under management. With 64 funds across four
investment disciplines (buyouts, growth capital, real estate and leveraged
finance), Carlyle combines global vision with local insight, relying on a
top-flight team of 475+ investment professionals
operating out of offices in 20 countries to uncover superior opportunities in
North America, Europe, Asia, Australia, the Middle East/North Africa and
Latin America.
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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. Rodman
& Renshaw, LLC, a subsidiary of Rodman & Renshaw Capital Group, Inc.
(Nasdaq: RODM), is an advisor to China Agritech.
For more information about the Company,
please visit http://www.chinaagritechinc.com.
Safe Harbor
Statement
This release may contain 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," “anticipates,” “estimates” 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 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@us.grayling.com
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