Attached files
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| EX-99.1 - CHINA-BIOTICS, INC | v194071_ex99-1.htm |
UNITED
STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C.
20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(D) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date
of report (Date of earliest event reported): August 16, 2010 (August 12,
2010)
CHINA-BIOTICS,
INC.
(Exact
Name of Registrant as Specified in Its Charter)
Delaware
(State or
Other Jurisdiction of Incorporation)
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333-110733
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98-0393071
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(Commission
File Number)
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(IRS
Employer Identification No.)
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No.
999 Ningqiao Road
Jinqiao
Export Processing Zone
Pudong,
Shanghai 201206
People’s
Republic of China
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(Address
of Principal Executive Offices)
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(Zip
Code)
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(86 21) 5834 9748
(Registrant’s
Telephone Number, Including Area Code)
Not Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General
Instruction A.2. below):
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o
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Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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Item
1.01 Entry into a Material
Definitive Agreement.
On August 12, 2010 (the “Effective Date”),
Best Design Holdings Ltd. (“Best Design”), an
indirect wholly-owned subsidiary of China-Biotics, Inc. (the “Company”), entered
into a District Entrance Project Agreement (the “Agreement”) with the
Governing Committee of the Yangling Agricultural High-tech Industries
Demonstration Zone (“Yangling”), pursuant
to which Best Design will construct a new facility in the Yangling Demonstration
Zone to be used for the production of probiotics and related biological
products for the animal feed industry (the “Project”).
Under the Agreement, within 30 days of
the Effective Date, Best Design is required to pay Yangling a performance
deposit of RMB3 million (the “Performance
Deposit”). The total area of the proposed site is 126 mu
(1 mu =
0.0667 hectares). If Best Design does not obtain the land use right
within 270 days of payment of the Performance Deposit, the Agreement will
terminate automatically and the Performance Deposit will be fully refunded to
Best Design. Within 60 days of receiving the applicable documentation
from the Land Resources Bureau, Best Design will receive the land on an “as-is”
basis. Yangling will then assist Best Design with the implementation
of the Project.
Best Design estimates that construction
of the new facility will be completed within two years. After
execution of the Agreement and completion of the matters relating to land use,
Yangling is required to provide financial assistance to Best Design in the sum
of RMB4.5 million. Thereafter, Yangling will support Best Design’s
business by making incentive payments to Best Design equal to (i) 100% of the
tax paid by Best Design and retained by the local government for the first three
years after the Project commencement date, and (ii) 50% of the tax paid by Best
Design and retained by the local government for the fourth year after the
Project commencement date.
Pursuant to the Agreement, the Project
will be conducted through an entity to be established by Best Design in
Yangling’s domicile. The registered capital of the new entity will be no less
than US$50 million, with the full amount to be injected within 24 months of the
project commencement date.
The Agreement provides that the terms
of the Agreement are subject to a feasibility report and preliminary design
plans approved by the Chinese government.
The foregoing description of the
Agreement does not purport to be complete and is qualified in its entirety by
reference to the full text of the Agreement, a copy of which the Company intends
to file with its Quarterly Report on Form 10-Q for the quarter ending September
30, 2010.
On August
16, 2010, the Company issued a press release with respect to the
Agreement. A copy of the press release is furnished hereto as Exhibit
99.1 and is incorporated herein by reference.
Item
2.03 Creation of a Direct
Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of
a Registrant.
The description in Item 1.01 above is
incorporated by reference into this Item 2.03.
Item 9.01 Financial Statements and
Exhibits.
(d) Exhibits
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Exhibit
Number
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Description
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99.1
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Press
Release, dated August 16, 2010
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SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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China-Biotics,
Inc.
(Registrant)
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Date:
August 16, 2010
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By:
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/s/ Song
Jinan
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| Song Jinan | |||
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Chief
Executive Officer, President,
Treasurer
and Secretary
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