-- Majority of Initial Proceeds to be Used for Marketing in 2008 --
HARBIN, China, March 31 /Xinhua-PRNewswire-FirstCall/ -- China Kangtai Cactus Biotech Inc. (the "Company") (OTC Bulletin Board: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based consumer products in China, today announced that the Company has entered into an equity purchase agreement with T Squared Investments LLC (the "Investor"), whereby T Squared Investments will invest $500,000 in the Company.
The Company intends to use the proceeds of the $500,000 investment to finance an aggressive marketing program in the domestic Chinese market with a goal to further penetrate and expose the large market demand of the cactus brand of China Kangtai. The Company also plans on acquiring additional equipment to enhance current and future production capacity. The remaining net proceeds of the financing will be used for product development and to institute a robust investor communication program.
The Company has in-place with the Investor an investment right and financing to provide an additional $6,500,000 for marketing, research & development, and growth purposes.
"We are excited to close this transaction with our new, long-term partner T Squared, as it will greatly help to realize our production and marketing strategy in 2008 onward," said Jinjiang Wang, President of CKGT.
Mark Jensen, of T Squared Partners LLC commented, "China Kangtai represents an exciting opportunity for the T Squared Partners LLC to invest in the rapidly expanding domestic cactus production industry in China. The Company's highly experienced management team has a proven track record of growth and we are very excited to be part of such a robust organization. We are confident that with our financial support, China Kangtai can increase its cactus production sales much more rapidly."
About China Kangtai Cactus Biotech, Inc.
|SOURCE China Kangtai Cactus Bio-Tech, Inc.|
Copyright©2008 PR Newswire.
All rights reserved