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: firstname.lastname@example.org In the U.S.: Mr. Kevin Theiss Investor Relations Grayling Tel: +1-646-284-9409 Email: email@example.com
|SOURCE China Agritech, Inc.|
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