BEIJING, Sept. 8 /PRNewswire-Asia/ -- China Agritech, Inc. (OTC Bulletin Board: CAGE) ("China Agritech" or "the Company"), a leading national liquid and granular organic compound fertilizer manufacturer and distributor in China, today announced that it will implement a 1 for 4 reverse split of its common stock effective on Tuesday, September 8, 2009. As a result of the reverse split, the stock will begin trading under the symbol "CTEC" on the OTC Bulletin Board, commencing on Tuesday, September 8, 2009.
Each shareholder of record as of September 8, 2009, will have 1 new common share for every 4 common shares previously held. The effect of the reverse split will be to reduce the number of shares of common stock outstanding to approximately 7.0 million from the 28.2 million shares, based on the number of shares outstanding as of June 30, 2009.
Mr. Yu Chang, Chief Executive Officer of China Agritech, commented, "We have successfully implemented our strategic business plan by expanding our sales network, developing sales and distribution relationships, and building capacity for our new organic granular fertilizer products. Our record quarterly financial performance in the 2009 second quarter was a direct result of management's strategic actions to grow the Company. We are pleased with our results year to date and are very enthusiastic about 2010 which should include a full year results of granular and increased sales of liquid. In addition, our capacity expansion for granular fertilizer, which we have already paid for, remains on track for completion by the end of this year. We are also implementing a reverse split to better position China Agritech to meet the qualifying thresholds for a more senior trading exchange in the U.S., which we believe will increase the visibility and trading characteristics of our stock."
About China Agritech, Inc.
China Agritech, Inc. is engaged in the development, manufacture and distribution of liquid and granular organic compound fertilizers and related products in China. The Company has developed proprietary formulas that provide a continuous supply of high-quality agricultural products while maintaining soil fertility. The Company sells its products to farmers located in 28 provinces of China.
For more information about the Company, please visit http://www.chinaagritechinc.com .
Safe Harbor Statement
This release may contain certain "forward-looking statements" relating to the business of China Agritech and its subsidiary companies, which can be identified by the use of forward-looking terminology such as "believes," "expects," "anticipates," "estimates" or similar expressions, including, but not limited to, statements regarding the continued demand for China Agritech's products, China Agritech's ability to sustain growth for the balance of the year and China Agritech's ability to generally meet all of its objectives. Such forward-looking statements involve known and unknown risks and uncertainties, including all business uncertainties relating to product development, marketing, concentration in a single customer, raw material costs, market acceptance, future capital requirements, and competition in general and other factors that may cause actual results to be materially different from those described herein as anticipated, believed, estimated or expected. Certain of these risks and uncertainties are or will be described in greater detail in our filings with the SEC. Except as required by law, China Agritech is under no obligation to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
For more information, please contact:
In China:
Mr. Gareth Tang
Chief Financial Officer
China Agritech, Inc.
Tel: +86-10-5962-1220
Email: gareth@chinaagritech.com
In the U.S.:
Mr. Kevin Theiss / Mr. Valentine Ding
Investor Relations
Grayling
Tel: +1-646-284-9409
Email: kevin.theiss@us.grayling.com
valentine.ding@us.grayling.com
