XI'AN, China, June 24, 2011 /PRNewswire-Asia-FirstCall/ -- China Agri-Business, Inc. ( "China Agri-Business" or "we", OTC: CHBU), a manufacturer and distributor of organic agricultural application products in China, announced that China Agri-Business , through its Chinese operating subsidiary, Shaanxi Xinsheng Centennial Agriculture & Technology Co., Ltd. (the "Company") acquired the right to manage and operate Shaanxi Qinfeng Agrochemical Inc. ("Qinfeng") in Xi'an, China.
Qinfeng is an agrochemical manufacturer. Currently, Qinfeng has an annual production capacity of 400 metric tons of diafenthiuron, 600 metric tons of prochloraz, and approximately 5,000 metric tons of seed coating agents and preparations. Qinfeng's estimated annual revenue is currently approximately 90 million Renminbi ("RMB") (approximately $13.9 million).
Pursuant to the management and operating agreement between the Company and Qinfeng, the Company will manage Qinfeng's operations from June 1, 2011 until December 31, 2013 (the "Term"). The Company is entitled to the net profits or losses from the operations of Qinfeng during the Term. During the Term, the Company has rights to use Qinfeng's production facilities and intangible assets (i.e. trade names, trademarks, and certain licenses), to hire and dismiss employees, to file all applicable registrations with government authorities, and to coordinate with third parties in connection with technical development and production.
The Company agreed: (1) to manage Qinfeng's assets and production lawfully; if production is unreasonably interrupted continually more than two months, Qinfeng may terminate the Agreement and hold the Company responsible for all resulting losses; (2) to be responsible for payment of all taxes and fees, except taxes relating to housing and land and pre-existing taxes and fees; (3) to be responsible for the safeguard of Qinfeng's assets and intangible assets; (4) to be responsible for the safety o
|SOURCE China Agri-Business, Inc|
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