HARBIN, China, Dec. 26, 2013 /PRNewswire-FirstCall/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products made from commercially cultivated cordyceps militaris, including medicinal products, functional health beverages, and organic and specialty foods, today announced that its long-term shareholder and value-added investor, Accretive Capital Partners ("Accretive Capital"), has increased its ownership stake by approximately 96% through several private transactions with management and a third party shareholder.
Established in 2000, Accretive Capital Partners is a private investment fund founded and operated by Richard Fearon, an active member of the Board of Directors of Nutrastar. Accretive Capital seeks to partner with exceptional managers of undervalued small and micro-cap public companies which represent attractive take-private candidates. A renowned value investor, Accretive Capital has received top fund rankings by Morningstar, Barron's Magazine, Bloomberg, Lipper, Barclay Managed Funds, and Infovest21, among others, and was recipient of HFM Week magazine's prestigious Best Single Manager Long-Term Performance Award in 2011 among all United States hedge funds under $250 million.
On December 23, 2013, Accretive Capital purchased 800,000 common shares and 2,750 preferred shares (convertible into common stock at the ratio of 1:10) of the Company for a total of 827,500 common share equivalents in private transactions. Post transaction, Accretive Capital increased its ownership from 5.3% to approximately 10.4% and has been building its position in Nutrastar since it first invested in January 2011.
The transactions included the acquisition of 700,000 common shares from Nutrastar's Chief Executive Officer and Founder, Ms. Lianyun Han, thus decreasing her voting power from approximately 52.7% to 47.2%, on a fully diluted basis. Ms. Han commented, "In response to market perceptions about public companies controlled by one individual, I agreed to reduce my stake by providing Accretive the additional ownership it was seeking. It was my pleasure to offer this sale to Accretive, as they are loyal, value-added, and long-term partners who share our values of being honest custodians of investor capital and our vision of benefitting society broadly."
She continued, "With these transactions, Nutrastar is no longer controlled by one individual, which we hope will give shareholders comfort and peace of mind that the Company is taking appropriate measures with well-suited and highly-regarded partners in the United States to ensure its growth and continued success both in China and abroad."
Richard Fearon, Founder and Managing Partner of Accretive Capital Partners and member of Nutrastar's Board of Directors, commented, "We are thrilled to solidify our strong partnership with Ms. Han and the Nutrastar team and we look forward to offering strategic guidance as Nutrastar takes steps to expand internationally."
For more information on this announcement, please refer to the Schedule 13D and Form 4 to be filed with the Securities and Exchange Commission.
About Nutrastar International Inc.
Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: email@example.com
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Safe Harbor Statement
This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information, please contact:
American Capital Ventures
|SOURCE Nutrastar International Inc.|
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