NEW YORK, Oct. 15 /Xinhua-PRNewswire-FirstCall/ -- China Agri-Business, Inc. (OTC Bulletin Board: CHBU) a manufacturer of biochemical agricultural application products in the People's Republic of China, today announced it has completed the sale of 3% unsecured convertible notes in an aggregate principal amount of $500,000 and warrants to purchase 500,000 shares of common stock to two accredited investors.
The notes mature in two years and bear interest at 3% per annum. The notes are convertible into common stock at the option of the holders at a conversion price of $0.50 per share. The warrants expire in three years and have an exercise price of $1.50. Upon exercise of the warrants, the holders will receive common stock and another warrant to purchase an equal amount of shares at an exercise price of $2.00 per share.
The Company received net proceeds of $431,500 from the offering after placement agent commissions and expenses. The Company plans to use the proceeds to pursue the expansion of its manufacturing and distribution operations, and for general working capital purposes.
Liping Deng, President and CEO of China Agri-Business, commented on the Company's announcement stating, "We are pleased to see that investors are confident in our plans for growth and expansion, particularly in this unpredictable market. We continue to seek to grow our presence within China's burgeoning organic foods market through entry in new geographic markets and product sectors."
About China Agri-Business, Inc.
China Agri-Business, Inc., through its operating company in China, Shaanxi Xin Sheng Centennial Agriculture and Technology Co., Ltd., develops, manufactures, and markets organic biochemical agricultural application products in China. The Company's two primary product groups are organic fungicides and bactericides.
Within these two groups, China Agri-Business produces more than 50 different proprietary applications. Our products designed to function as botanical growth and vitality stimulants soil conditioners, and as plant nutrient supplements. The Company's products are designed to prevent and cure plant diseases and parasites, and for application to a variety of crops, including potatoes, vegetables, cotton and fruit plants, and orchard trees. They can be used either alone or to supplement other products. The Company owns and manages its manufacturing facilities and has established a distribution network that covers approximately 20 provinces throughout China.
Safe Harbor
Certain statements in this release concerning our future growth prospects are forward-looking statements, within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, and Section 21E of the U.S. Securities Exchange Act of 1934, as amended, which involve a number of risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding our ability to maintain profitability and manage our planned growth, competition, wage increases in China, attracting and retaining skilled professionals, time and cost overruns, potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts, and legal restrictions on raising capital or acquiring companies under PRC law. Additional risks that could affect our future operating results are more fully described in our filings with the United States Securities and Exchange Commission, including our Annual Report on Form 10-K for the year ended December 31, 2007, and Quarterly Reports on Form 10-Q for the quarters ended March 31, 2008 and June 30, 2008. These filings are available at http://www.sec.gov . We may, from time to time, make additional written and oral forward-looking statements, including statements contained in our filings with the Securities and Exchange Commission and our reports to shareholders. We do not undertake to update any forward-looking statements that may be made from time to time by or on our behalf.
