Proceeds of $5.9 Million to Fund New Production Line and Expansion
HARBIN, China, July 1 /PRNewswire-Asia-FirstCall/ -- Emerald Dairy, Inc. (OTC Bulletin Board: EMDY, "Emerald Dairy" or the "Company"), a leading producer and distributor of infant and children's formula and manufacturer of rice and soybean products, today announced that it received $0.8 million through the issuance of a note and $5.14 million through an asset sale, which was structured as a sale leaseback. Proceeds totaling $5.94 million will be utilized to complete the build-out of the first production line at its new milk powder processing facility in Hailun City.
The 1-year loan pays 10% interest and matures on June 24, 2011. The sale of certain milk powder processing equipment was completed to Fenghui Leasing Co., Ltd. ("Fenghui"). Emerald Dairy will pay Fenghui 36 monthly lease payments of $163,000, totaling $6.04 million, including a buy-out. In addition, Fenghui received three-year warrants to purchase 934,600 shares of EMDY common stock at $1.65 per share.
"This capital will enable us to purchase and install the final equipment necessary to complete our new milk powder production line, while providing working capital and marketing dollars to support the expansion. We anticipate commencing operations at our new facility by early August where we will produce both our Yi Bai(R) and Xing An Ling(R) brands," Mr. Yong Shan Yang Chairman and CEO of Emerald Dairy, commented.
"We are currently operating at near 100% capacity utilization, and this new line will more than double our current capacity to 19,000 metric tons annually, enabling us to capture incremental market share from existing and new customers in the 20 provinces we serve. We are focused on 'Tier Two' through 'Tier Four' cities, which represent the fastest growing populations in China and provide us with the highest long-term growth potential," Yang concluded.
About Emerald Dairy
Through its wholly-owned operating subsidiaries, Emerald Dairy, Inc. is a producer and distributor of infant and children's formula, milk powder and soybean products in the People's Republic of China. The Company's products are sold under two brand names -- "Xing An Ling," designed for low-end customers, and "Yi Bai," designed for middle and high-end customers.
Forward Looking Statements
Certain statements in this release and other written or oral statements made by or on behalf of the Company are "forward looking statements" within the meaning of the federal securities laws. Statements regarding future events and developments and our future performance, as well as management's expectations, beliefs, plans, estimates or projections relating to the future are forward-looking statements within the meaning of these laws. The forward looking statements are subject to a number of risks and uncertainties including market acceptance of the Company's services and projects and the Company's continued access to capital and other risks and uncertainties. The actual results the Company achieves may differ materially from any forward-looking statements due to such risks and uncertainties. These statements are based on our current expectations and speak only as of the date of such statements.
For more information, please contact:
Company Contact:
Shu Kaneko
Chief Financial Officer
Emerald Dairy, Inc.
Email: shu.kaneko@amnutriadairy.com
Web: http://www.emeralddairy.com/
Investor Relations
Mr. John Mattio
HC International, Inc.
Phone: +1-203-616-5144
Email: john.mattio@hcinternational.net
Web: http://www.hcinternational.net/
