ZHENJIANG, China, Aug. 12, 2016 /PRNewswire/ -- Delta Technology Holdings Limited (NASDAQ: DELT) today issued the following letter to its shareholders:
Dear Delta Technology Shareholders:
You probably have seen or heard about two news releases your Company recently issued about a new direction for Delta Technology. We are dedicating ourselves to solving a major global problem, hunger.
We know that the world has to produce more food crops for future population growth. Also we know that some 40 percent of the world's food crops are lost each year due to plant diseases, according to Wikipedia.
The Company has dedicated existing resources and facilities to the production of prothioconazole, a germicide used to prevent and cure crop disease. We already manufacture two of the primary raw material components for prothioconazole, a systemic fungicide. This product is safe, non-toxic to embryos, and harmless to humans and the environment but deadly to the diseases that destroy crops.
We expect annual sales of $100 million from the new product within a three-year period after the launch in the third quarter of calendar year 2017. There is only one other company in the world making this product. Billions of dollars are spent annually to reduce crop disease and much of this money is simply wasted on products that do not work, according to Wikipedia. We have completed multiple bench and pilot tests and have successfully produced this compound. We believe that we have the expertise and the right team to make this succeed.
We project revenues of $66.5 million from July 2016 to the end of June 2017 and positive net income while we make the progress needed on our new product and shift to become a biotech leader.
We are exploring ways to use our expertise and our talent to refocus the Company into a biotechnology giant. Because of our talent and teamwork we have a great potential to invent and develop new products, especially in the agricultural sector. We ask our investors to have patience and to watch carefully as we continue to tell the investment world about our successes.
Chairman & CEO
About Delta Technology Holdings Ltd.
Founded in 2007, Delta Technology is a leading China-based chemical company producing and distributing organic compounds. The end application markets of the Company's products include 380 clients in the automotive, pharmaceutical, agrochemical, dye & pigments, aerospace, ceramics, coating-printing, clean energy and food additive industries. Delta Technology has approximately 300 employees, many of whom are highly-qualified experts and technical personnel. The Company serves more than 380 clients in various industries and has announced its plans to move into the Biotechnology sector.
Safe Harbor Statement
This press release may contain 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. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded or followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in DELT's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by DELT.
Contact: Paul Knopick
940.262.3584 (Texas, USA)
SOURCE Delta Technology Holdings Limited