CHANGGE CITY, China, June 27 /Xinhua-PRNewswire-FirstCall/ -- Zhongpin Inc. (OTC Bulletin Board: ZHNP) ("Zhongpin"), a leading meat and food processing company in the People's Republic of China ("PRC"), is pleased to report the exercise of warrants to purchase 2,869,859 shares of its common stock for net proceeds of approximately $13 million as of June 19, 2007.
Zhongpin issued warrants to purchase 3,450,000 shares of its common stock in a private placement, along with Series A convertible preferred stock, in January 2006 that are exercisable for a period of five years at an exercise price of $5.00 per share. In December 2006, Zhongpin issued additional warrants to purchase an aggregate of 884,796 shares of its common stock with an exercise price of $5.50 per share. As a result of the exercise of the warrants, Zhongpin received net cash proceeds of approximately $13 million.
"We believe the exercise of these warrants demonstrates a strong vote of confidence in Zhongpin's recent execution and strong prospects. The net proceeds of approximately $13 million from these warrant exercises strengthens our balance sheet and provides additional liquidity that will support our strategy to build shareholder value as we continue to expand our production capacity," said Xianfu Zhu, CEO of Zhongpin.
About Zhongpin
Zhongpin is a meat and food processing company that specializes in pork and pork products and vegetables and fruits, in the PRC. Its distribution network in the PRC spans more than 20 provinces and includes over 2,800 retail outlets. Zhongpin's export markets include the European Union, Eastern Europe, Russia, Hong Kong, Japan and South Korea. For more information, contact CCG Elite directly or visit Zhongpin's website at http://www.zpfood.com .
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Forward-looking statements are statements that are not historical facts. Such forward-looking statements are based upon the current beliefs and expectations of Zhongpin's management and are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: unanticipated changes in product demand, interruptions in the supply of live pigs/raw pork, downturns in the Chinese economy, delivery delays, freezer facility malfunctions, poor performance of the retail distribution network, changes in applicable regulations, and other information detailed from time to time in the Company's filings and future filings with the United States Securities and Exchange Commission.