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.