As of September 30, 2008, the Company had total assets of $35.6 million, compared to $23.1 million as of December 31, 2007. Working capital was $28.4 million, total current liabilities were $3.7 million and the Company had $204,962 in long term liabilities. Stockholders' equity totaled $30.5 million as of September 30, 2008, compared to $12.9 million at the end of 2007. Illustrating differences between Yongye Nongfeng and the predecessor company it spun off from in 2008, changes in working capital over the nine month period ended September 30, 2008 were primarily due to a decrease in inventory of $7,791,256, reflecting Yongye Nongfeng's current business model of purchasing only finished goods as inventory, an increase in cash of $6,471,556 due mostly to two financings, increased sales capability, and a large accounts receivable increase of $19,048,258 because of greater sales volume.
Key Events and Changes
In September, the Company closed a private placement financing through which the Company issued 6,073,006 shares of its common stock for gross proceeds of approximately $9.4 million. The proceeds from this placement are being used to pay for the Company's recently opened production facility and for organizational restructuring.
As described in its September Financing Disclosure Schedule, Yongye
acquired its predecessor company's manufacturing equipment and will acquire
remaining land use rights, buildings, equipment and permits which currently
belong to its predecessor and outsourced manufacturing partner Inner
Mongolia Yongye once the predecessor and manufacturing partner are ready to
transfer their fertilizer manufacturing license to Yongye Nongfeng. This
will enable Yongye Nongfeng to centralize and better manage the Company's
product research and development, manufacturing, marketing and
distribution. The Company hopes to become a more tightly integrated
business with greater control
|SOURCE Yongye Biotechnology International, Inc.|
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