XI'AN, China, June 21 /PRNewswire-Asia-FirstCall/ -- China Green Agriculture, Inc. (NYSE: CGA; "China Green Agriculture" or "the Company"), a leading producer and distributor of fertilizer in China, today announced that it has successfully completed its due diligence and audit on a 300,000 metric-ton fertilizer production facility in China, which the Company plans to acquire 100% interest. In April 2010, China Green Agriculture announced that it signed a Memorandum of Understanding ("MOU") to purchase the aforementioned fertilizer production facility in a combination of cash and equity. The acquisition is expected to close within the next 30 working days.
"We are very pleased with being on schedule and completing our due diligence on the acquiring production facility which will further strengthen our distribution network and broaden our product mix to meet the growing demand for both traditional and organic fertilizers in China, and is expected to be accretive to earnings in fiscal year 2011," commented Mr. Tao Li, Chairman and CEO of China Green Agriculture. "As we embark on the next chapter for our Company, we feel that we are well positioned to continue our robust growth trajectory through both organic growth and selective acquisitions as we further gain market share and build on being one of the leading fertilizer producers in China."
The acquired facility will increase the Company's output level to 355,000 metric tons which currently produces both traditional and organic compound fertilizer products. The 300,000 metric ton facility currently has a utilization rate of approximately 60% and is expected to contribute at least $8 million in net income in fiscal year ending June 30, 2011.
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, the acquisition target company's financial and operational condition 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: email@example.com In China: China Green Agriculture, Inc. Mr. Jonnie Wang, Secretary of Board, Investor Relations Officer Tel: +86-29-8826-6368 Email: firstname.lastname@example.org
SOURCE China Green Agriculture, Inc.