Attached files
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| 8-K - FORM 8-K - Feihe International Inc | v209855_8k.htm |
| EX-10.1 - REDEMPTION AGREEMENT - Feihe International Inc | v209855_ex10-1.htm |
Feihe
International, Inc. Announces Redemption Agreement
BEIJING
and LOS ANGELES, February 2, 2011 /PRNewswire Asia-FirstCall/ -- Feihe
International, Inc. (NYSE: ADY; "Feihe International" or the "Company")
(formerly known as American Dairy, Inc.), one of the leading producers and
distributors of premium infant formula, milk powder and soybean, rice and walnut
products in China, today announced that it has entered into a redemption
agreement with Sequoia Capital. The Company agreed to purchase from
Sequoia Capital, and Sequoia Capital agreed to sell to the Company, the
2,625,000 shares that Sequoia Capital acquired from the Company pursuant to its
August 2009 financing. The repurchases are scheduled to occur in four
equal installments on March 31, 2011, September 30, 2011, December 31, 2011 and
March 31, 2012.
Sequoia
Capital originally acquired these shares pursuant to a subscription agreement
with the Company entered into in August 2009. The subscription
agreement granted Sequoia Capital a right to have these shares redeemed if the
average of closing prices of the Company’s common stock for the fifteen trading
days commencing on the third anniversary of the closing date is less than $39.00
per share.
Mr. Leng
You Bin, the Company's Chairman and Chief Executive Officer, stated, “We are
very pleased to have been able to reach an agreement with Sequoia Capital to
repurchase its 2,625,000 shares on an accelerated basis. This
transaction results in a lower overall cost of capital and provides more
flexibility for the Company.”
About
Feihe International, Inc.
Feihe
International, Inc. (NYSE: ADY) (formerly known as American Dairy, Inc.), is one
of the leading producers and distributors of premium infant formula, milk
powder, and soybean, rice and walnut products in the People's Republic of China.
Feihe International conducts operations in China through its wholly owned
subsidiary, Feihe Dairy, and other subsidiaries. Founded in 1962, Feihe Dairy is
headquartered in Beijing, China, and has processing and distribution facilities
in Kedong, Qiqihaer, Baiquan, Gannan, Longjiang, Shanxi, and Langfang. Using
proprietary processing techniques, Feihe International makes products that are
specially formulated for particular ages, dietary needs and health concerns.
Feihe International has over 200 company-owned milk collection stations, two
dairy farms, seven production facilities with an aggregate milk powder
production capacity of approximately 1,250 tons per day and an extensive
distribution network that reaches over 90,000 retail outlets throughout China.
For more information about Feihe International, Inc., please visit
http://ady.feihe.com.
Cautionary
Note Regarding Forward-Looking Statements
This document
contains forward-looking information about the Company’s operating results and
business prospects that involve substantial risks and uncertainties. Statements
that are not purely historical are forward-looking statements within the meaning
of Section 21E of the Securities Exchange Act of 1934, as amended, and
Section 27A of the Securities Act of 1933, as amended. These statements
include, but are not limited to, statements about the Company’s plans,
objectives, expectations, strategies, intentions or other characterizations of
future events or circumstances and are generally identified by the words “may,”
“expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,”
“targets,” “could,” “would,” and similar expressions. Because these
forward-looking statements are subject to a number of risks and uncertainties,
the Company’s actual results could differ materially from those expressed or
implied by these forward-looking statements. Factors that could cause or
contribute to such differences include, but are not limited to, those discussed
under the heading “Risk Factors” in the Company’s annual report on Form 10-K for
the fiscal year ended December 31, 2009 and in other reports filed with the
United States Securities and Exchange Commission and available at www.sec.gov. The Company assumes
no obligation to update any such forward-looking statements.
CONTACT
In the
U.S.: ir@americandairyinc.com
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In
China:
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May
Shen, IR Manager
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86-10-8457-4688
x8810
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shenchunmei@americandairyinc.com
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