Key Developments For China Agritech, Inc.
China Agritech, Inc. (CAGC.O) (Consolidated Issue listed on NASDAQ Global Market)
China Agritech Inc. Raises FY 2009 Guidance
China Agritech Inc. announced that it expects net revenue for fiscal 2009 to be approximately $70 million versus the previous guidance of over $60 million. The revised guidance for net income is increased to approximately $15.6 million. The new guidance reflected business seasonality in the fourth quarter and some of the year-end expenses. Diluted earnings per share are now expected to approximate $2.25, based on the current average number of diluted shares outstanding. The new guidance represents almost a 55% increase for net revenues and around a 62% rise for net income over fiscal 2008 results.
China Agritech Inc. Receives Strategic Investment From The Carlyle Group
China Agritech Inc. announced the signing and closing of a private placement with Carlyle Asia Growth Partners, the growth capital arm of The Carlyle Group, of 1,392,768 shares of China Agritech common stock and warrants to purchase up to an additional 928,514 shares of China Agritech common stock for aggregate gross proceeds of $15 million. As a result of the transaction, The Carlyle Group, through its affiliates holds approximately 16.5% of the issued and outstanding China Agritech common stock. In the event that the Company does not meet a net income target of $11.5 million for fiscal year 2009, The Carlyle Group affiliates will be issued additional shares of common stock and the initial warrant exercise price of $10.77 per share will be reduced, thereby resulting in additional warrant shares being issuable upon exercise of the warrants. The proceeds from the private placement will be used for business expansion and working capital purposes.
China Agritech Inc. Raises FY 2009 Guidance; Issues FY 2009 EPS Guidance
China Agritech Inc. raised its fiscal 2009 guidance and expects net revenue to be as high as $70 million versus the previous guidance of over $60 million, net income is approximately $12.5 million compared with the previous guidance of $9.5 million and diluted earnings per share (EPS) of approximate $1.88, based on the current average number of diluted shares outstanding. The new guidance represents almost a 55% increase for net revenues and around a 45% rise for net income over the year 2008 results.
China Agritech Inc. Changes Exchange From OTC Bulletin Board To NASDAQ-Stock Exchange
The Stock Exchange reported that China Agritech Inc. has changed its exchange from OTC Bulletin Board to NASDAQ.
China Agritech Inc. Expands Sales Contract with Sinochem Fertilizer Co., Ltd.
China Agritech Inc. announced that it has expanded a sales and distribution partnership with Sinochem Fertilizer Co., Ltd. (Sinochem) for the Company's 'Green Vitality' granular fertilizer products. This contract is for the supply of 15,000 tons of Green Vitality granular fertilizer and is worth an estimated value of RMB 44 million (approximately USD6.4 million value of sales). This contract runs through December 2010. The Company will continue to supply Sinochem with 'Green Vitality' liquid fertilizer under an existing contract.
