DAQING, China, Dec. 20, 2010 /PRNewswire-Asia-FirstCall/ -- China Nutrifruit Group Limited (NYSE Amex: CNGL) ("China Nutrifruit" or "the Company"), a leading producer of premium specialty fruit based products in China ("PRC"), today announced that it has filed a registration statement with the Securities and Exchange Commission for a proposed offering of 73,000,000 units of Taiwan Depositary Receipt (the "TDRs"), representing 7,300,000 shares of the Company's common stock, of which 5,000,000 shares are expected to be offered by the Company and 2,300,000 shares are expected to be offered by the selling stockholder. The Company plans to apply for listing the TDRs on the Taiwan Stock Exchange.
China Nutrifruit will not receive any proceeds from the sale of the shares expected to be offered by the selling stockholder. China Nutrifruit intends to use the net proceeds from this offering for construction of a second fruit and vegetable production line with an expected annual production capacity of 10,000 tons in Daqing and a new facility with a new multi-purpose concentrate juice/pulp production line in Mu Dan Jiang with an expected annual production capacity of 8,000 tons.
Grand Cathay Securities Corporation, a Taiwanese company, will be the appointed manager and underwriter of the offering of the TDRs. When available, a copy of the preliminary prospectus related to the offering may be obtained from Grand Cathay Securities Corporation. Address: 12F., No. 2, Sec.1.Chongqing S.Rd., Taipei City 100, Taiwan, R.O.C. Phone:+886-2-2314-8800 ext 7192 or 7166.
A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted 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 these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About China Nutrifruit Group Limited
Through its subsidiary Daqing Longheda Food Company Limited, China Nutrifruit, is engaged in developing, processing, marketing and distributing a variety of food products processed primarily from premium specialty fruits grown in Northeast China, including golden berry, crab apple, blueberry, seabuckthorn, blackcurrant and raspberry. The Company's processing facility possesses ISO9001 and HACCP series qualifications. Currently, the Company has established an extensive nationwide sales and distribution network throughout 17 provinces in China. For more information, please visit http://www.chinanutrifruit.com.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Such statements include, among others, those concerning our planned public offering of TDRs, participation of selling stockholder in the offering, our proposed use of proceeds, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. There can be no assurance that China Nutrifruit's Taiwan listing will provide a more convenient trading platform for all existing and potential investors and no assurance that the dual listing will enhance the Company's liquidity and valuation. You are cautioned that any such forward-looking statements are not guarantees of future performance and that a number of risks and uncertainties could cause actual results of the Company to differ materially from those anticipated, expressed or implied in the forward-looking statements. The words "believe," "expect," "anticipate," "project," "targets," "optimistic," "intend," "aim," "will" or similar expressions are intended to identify forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those anticipated include risks related to new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China; any statements of belief or intention; any of the factors mentioned in the "Risk Factors" section of our Annual Report on Form 10-K for the year ended March 31, 2010, and other risks and uncertainties mentioned in our other reports filed with the Securities and Exchange Commission. The Company assumes no obligation and does not intend to update any forward-looking statements, except as required by law.
Mr. Colman Cheng, Chief Financial Officer
China Nutrifruit Group Limited
Investor Relations Contact:
Mr. Crocker Coulson, President
CCG Investor Relations
Tel: +1-646-213-1915 (NY office)
Elaine Ketchmere, Partner
Tel: +1-310-954-1345 (LA office)
SOURCE China Nutrifruit Group Limited