China Green Agriculture, Inc. Announces Court's Preliminary Approval of Proposed Settlement of Shareholder Derivative Cases
XI'AN, China, Feb. 9, 2012 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or the "Company"), a producer and distributor of humic acid based compound fertilizers, blended fertilizers, organic compound fertilizers, mixed organic-inorganic compound fertilizers, slow-release fertilizers, highly-concentrated water soluble fertilizers and agricultural products, such as top-grade fruits, vegetables, flowers and colored seedlings through its wholly-owned subsidiaries in China, today announced that, on February 1, 2012, the First Judicial District Court of the State of Nevada in and for Carson City (the "Court") preliminarily approved the proposed settlement of all of the four pending derivative actions brought on behalf of China Green Agriculture, Inc.
Subject to the Court's final approval, the proposed settlement will result in a release of all claims and does not provide for the payment of monetary compensation to shareholders. Instead, it provides for the adoption by the Company certain significant corporate governance reforms designed to strengthen the Company's internal controls and for the payment of plaintiffs' attorneys' fees and expenses of $650,000, all to be contributed by the insurers.
The hearing for the final approval of the proposed settlement has been set on March 30, 2012 at 1:30 p.m., pacific time.
The proposed settlement does not involve the pending class action lawsuit filed against the Company and certain of its current and former officers in the United States District Court for the District of Nevada on October 15, 2010.
For more information including important information regarding the rights of shareholders with respect to the proposed settlement, please refer to the Notice of Pendency and Proposed Settlement of Shareholder Derivative Actions filed as an exhibit to the Company's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission on February 8, 2012.
About China Green Agriculture, Inc.
The Company mainly produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly-owned subsidiaries, i.e.: Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. ("Jinong") and Beijing Gufeng Chemical Products Co., Ltd. ("Gufeng"), Xi'an Jintai Agriculture Technology Development Company ("Jintai") and Xi'an Hu County Yuxing Agriculture Technology Development Co., Ltd. ("Yuxing"). Jinong produced and sold 152 different kinds of fertilizer products as of December 31, 2011, all of which are certified by the PRC government as Green Food Production Materials, as stated by the China Green Food Development Center. Jinong currently markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 22 provinces, four autonomous regions, and three central-government-controlled municipalities in the PRC. Jinong had 699 distributors in China as of December 31, 2011. Gufeng, and its wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co., Ltd., are Beijing-based producers of compound fertilizer, blended fertilizer, organic compound fertilizer, and mixed organic-inorganic compound fertilizer. As of December 31, 2011, Gufeng produced and sold 313 different kinds of fertilizer products, and had 177 distributors in China. For more information, visit http://www.cgagri.com. The Company routinely posts important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 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, the execution of its ten-year growth plan and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risk factors detailed in the Company's reports filed with the U.S. 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, except as required by applicable law or regulation.
For more information, please contact:
China Green Agriculture, Inc.
Ms. Jane Zuo (English and Chinese)
Secretary of the Board
SOURCE China Green Agriculture, Inc.