BEIJING, April 18 /Xinhua-PRNewswire-FirstCall/ -- Yongye Biotechnology International, Inc. ("Yongye") (OTC Bulletin Board: GDTN), a leading distributor of plant and animal nutrients headquartered in Beijing, PRC, announced today the completion of a reverse merger and share exchange transaction with the public company formerly known as Golden Tan, Inc. based in Robson, British Columbia, Canada. Simultaneous with the completion of the share exchange transaction, Yongye closed a private placement of its capital stock whereby it received approximately $10.0 million in gross offering proceeds, before payment of commissions and fees. Approximately 6.5 million shares were issued in the private placement at a per share price of $1.54.
The transaction was completed by the exchange of newly issued shares of Yongye for shares held by the shareholders of the holding company controlling the Company's operations in China. Yongye remained the surviving corporation and, as a result of the share exchange, the holding company became a wholly- owned operating subsidiary of Yongye. In connection with the reverse merger, Golden Tan's corporate name was changed to Yongye Biotechnology International, Inc.
In consideration for their shares of Yongye, the shareholders collectively received approximately 84.0% of Yongye's shares after giving effect to the transaction, or 29.2% of Yongye's shares after giving effect to the financing. Furthermore, the officers and directors of Golden Tan were replaced by nominees appointed by Mr. Wu (CEO and Chairman of Yongye), all as more fully disclosed in the Form 8-K being filed with the Securities and Exchange Commission. Golden Tan has ceased all of its existing business operations and will immediately adopt and implement Yongye's business plan.
With headquarters in Beijing and manufacturing plant in Hohhot, Inner
Mongolia, Yongye is engaged in the research, development, production and
sales of fulvic acid based liquid and p
|SOURCE Yongye Biotechnology International, Inc.|
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