XI'AN, China, July 27 /PRNewswire-Asia/ -- China Green Agriculture, Inc. (NYSE: CGA) ("China Green Agriculture" or "the Company"), a leading producer and distributor of humic acid ("HA") based compound fertilizer through its wholly owned subsidiary, Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd., announced today that it filed a shelf registration statement on Form S-3 with the U.S. Securities and Exchange Commission (the "SEC") on July 23, 2010. The shelf registration, when declared effective, will permit China Green Agriculture to issue up to an aggregate of $200 million of securities, including equity, debt and other securities as described in the registration statement.
The shelf registration provides the Company with flexibility to publicly offer and sell securities from time to time, in one or more separate offerings or transactions, with size, price and terms to be determined at the time of offering. While the Company does not have any commitments or current intention to sell securities under the registration statement at this time, filing a shelf registration statement is intended to give China Green Agriculture greater flexibility to capitalize on favorable market conditions and to respond to strategic opportunities as they may arise. The Company is not required to offer or sell any securities under the shelf registration statement. The terms of any offering under the "shelf" registration statement will be furnished under a separate prospectus supplement at the time of any offering.
"This shelf registration is in preparation for our strategic expansion to be implemented over the next three to five years. While the shelf will be valid for three years from the date it is declared effective by the SEC, we have no new funding commitments and do not expect to sell additional securities at the current price level or for any transactions through the end of this calendar year," stated Mr. Tao Li, Chairman and CEO of China Green Agriculture, "Coupled with our strong operating cash flow, the registration furnishes the Company with additional flexibility and better positions China Green Agriculture to promptly execute in the event a consolidation or acquisition opportunity develops. When such an opportunity emerges in the coming years, we would like to have adequate resources to respond quickly to maximize shareholder value."
The shelf registration statement has not been declared effective. The securities to be offered by the Company under the shelf registration statement may not be sold prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities law of any such jurisdiction. Any offering may be made only by means of the prospectus and a related prospectus supplement relating to that offering.
About China Green Agriculture, Inc.
China Green Agriculture, Inc. currently offers 148 different HA-based compound fertilizers, which are distributed via 552 individual distributors covering 21 provinces, 4 autonomous regions and 3 municipal cities in China. Its fertilizer products are certified by the Chinese government as "Green Food Production Materials." The leading five provinces which collectively accounted for 40.4% of the Company's fertilizer revenue for the three months ended March 31, 2010 are Shaanxi (11.2%), Shandong (10.8%), Anhui (7.9%), Henan (5.6%), and Sichuan (4.9%). For more information, visit http://www.cgagri.com .
Safe Harbor Statement
This press release contains forward-looking statements concerning the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic and business conditions, development, shipment, market acceptance, additional competition from existing and new competitors, changes in technology, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Cautionary Statement and the risk factors detailed in the Company's reports filed with the Securities and Exchange Commission. China Green Agriculture undertakes no duty to revise or update any forward-looking statements to reflect events or circumstances after the date of this release.
For more information, please contact:
HC International, Inc.
Ted Haberfield, Executive VP
Tel: +1-760-755-2716
Email: thaberfield@hcinternational.net
China Green Agriculture, Inc.
Mr. Ken Ren, Chief Financial Officer
Tel: +1-530-220-3026
Email: kenren@cgagri.com
