-- 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.
China Kangtai Cactus Biotech Inc. is market-leading cactus grower and producer of cactus-related products with over 387 acres of plants and an active R&D group that holds 15 product patents and is seeking another 15 in a variety of product categories. China Kangtai's high-quality products are sold throughout China in supermarkets, food stores, hotels and restaurants through a growing distribution network that has currently covered 14 provinces and 4 municipalities.
About T Squared Investments LLC
T Squared Partners and T Squared Investments LLC is a fundamentally- oriented private investment firm focusing on special situation and value growth oriented micro-cap public and private companies. The fund's philosophy is to work with companies to enhance their shareholder value through friendly investment structures in addition to providing industry leading strategic advice.
Cautionary Statement Regarding Forward-looking Information
This press release contains forward-looking information about China
Kangtai Cactus Biotech that is intended to be covered by the safe harbor
for forward-looking statements provided by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements are statements
that are not historical facts. These statements can be identified by the
use of forward- looking terminology such as "believe," "expect," "may,"
"will," "should," "project," "plan," "seek," "intend," or "anticipate" or
the negative thereof or comparable terminology, and include discussions of
strategy, and statements about industry trends and China Kangtai Cactus
Biotech future performance, operations and products.
For more information, please contact:
China Kangtai Cactus Biotech, Inc.
|SOURCE China Kangtai Cactus Bio-Tech, Inc.|
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