BEIJING, Sept. 10 /Xinhua-PRNewswire-FirstCall/ -- Yongye Biotechnology International, Inc. (OTC Bulletin Board: YGYB; "Yongye" or the "Company"), a leading developer, producer and distributor of nutrients for plants and animals in the People's Republic of China, today announced that it closed a private placement financing with certain institutional investors led by Black River Asset Management, pursuant to which the Company issued 6,073,006 shares of its common stock for gross proceeds of approximately $9.4 million. Roth Capital Partners served as the placement agent.
The Company intends to use the proceeds from this placement to begin
restructuring Yongye Nongfeng Biotechnology Co. ("Yongye Nongfeng"), the
Cooperative Joint Venture (CJV) through which Yongye conducts operations in
China, and for working capital. The initial steps in the restructuring will
be to purchase production equipment located at an existing 2,000 Tonnes Per
Annum (TPA) production line that is owned by the Company's current contract
manufacturer, Inner Mongolia Yongye Biotechnology Company, Ltd. ("Inner
Mongolia Yongye"), which is scheduled to occur by the end of October 2008,
and to construct a new 8,000 TPA production facility, which is scheduled to
be completed by the middle of October 2008. The combined 10,000 TPA
capacity of both facilities will allow the Company to produce its own
finished goods in the quantities needed to fulfill its current and future
sales goals. After the completion of the equipment purchase and the
integration of the equipment with the Company's new 8,000 TPA facility, the
Company will discontinue its current exclusive contract manufacturing
agreement with Inner Mongolia Yongye. The final step to the restructuring
will be to transfer to the CJV all of the land, buildings and permits that
belong to Inner Mongolia Yongye, and the new manufacturing facility, which
will make the CJV the Company's own manufacturing and distribution entity.
The full restruc
|SOURCE Yongye Biotechnology International, Inc.|
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