BEIJING, May 8 /PRNewswire-Asia-FirstCall/ -- Yongye Biotechnology International, Inc. (OTC Bulletin Board: YGYB, "Yongye" or the "Company"), a leading developer and distributor of plant and animal nutrient products in the People's Republic of China, today announced that it closed a private placement financing with institutional and other accredited investors which included many of the same investors who participated in its April and September 2008 financings. Gross proceeds of approximately $9.0 million were generated through the issuance of 5.83 million shares of common stock at $1.54 per share. ROTH Capital Partners served as the placement agent.
The Company sells most of its Shengmingsu brand products to a limited number of independent regional distributors which then sell the products to local distributors and approximately 3,500 Yongye branded and other retail stores. Beginning in late 2008, the independent regional distributors started receiving new orders from their local distributors and retail stores for an increasing volume of Yongye products to be delivered in 2009. These additional orders led Yongye to seek additional financing. The Company plans to use the proceeds of the current private placement as working capital to help ensure that it can fill all of the orders it has already received and continues to receive from the independent distributors.
Revised Revenue and Net Income Guidance
Yongye is raising its previously announced revenue and net income guidance because of increased sales supported by this current financing. Yongye revises its previously announced revenue guidance for fiscal year 2009 from $66 million to $82 to $84 million, and its previously announced net income guidance from $15.8 million to $23 to $24 million.
"We undertook great effort in 2008 to build up Yongye's marketing and
technical support functions so that they could support, scale with
|SOURCE Yongye Biotechnology International, Inc.|
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