BEIJING, Aug. 5, 2005 (PRIMEZONE) -- China Agritech, Inc. (OTCBB:CAGC), China's leading developer, manufacturer and distributor of organic compound fertilizers announced today that it has completed the sale of $1,350,000.00 in common stock to an investment group led by Chinamerica Fund, LP.
Mr. Chang Yu, Chief Executive Officer of China Agritech is quoted as saying, "We are pleased to have this financial commitment, as well as the ongoing support and assistance of a sophisticated institutional investor like Chinamerica. Their experience helping build growth companies both within the United States and in rapidly growing international markets such as China enhances our Company's competitive advantage over our competitors."
China Agritech will use the proceeds of this offering to better position the Company for continued expansion as well as to defray the costs incurred in its recent reverse merger.
Chris Efird, Managing Director of Chinamerica, LP said, "Chinamerica Fund is excited about China Agritech's positioning and expansion plans. We believe they are in the right place to benefit from the ongoing intensification of Chinese agriculture and the push by the Chinese government for environmentally friendly fertilizer products. Our research and diligence suggests China Agritech offers our fund a very attractive investment in the future of the Chinese agricultural industry."
Chinamerica is also providing assistance to China Agritech with respect to strategic planning, obtaining a listing on one or more exchanges, raising additional capital and preparing to achieve the ambitious growth targets of the Company.
About China Agritech, Inc.
China Agritech, Inc. and its wholly-owned direct subsidiary, China Tailong Holdings Company Limited ("Tailong"), and Tailong's 90% owned subsidiary, Pacific Dragon Fertilizer Co., Ltd. ("Pacific Dragon") develops, produces and markets various organic liquid compound fertilizers which are made from a combination of organic elements such as humic acid and amino acid, inorganic elements such as nitrogen, phosphorus and potassium, microelements such as boron, iron, zinc, manganese and molybdenum, and other active and stimulative agents. Since its establishment, Pacific Dragon has developed, tested, and produced various types of organic liquid compound fertilizers, all of which obtained the Interim Registration Certificates issued by the PRC Ministry of Agriculture in 1999 and the formal Registration Certificates in 2002. Pacific Dragon's products are proven to be innocuous, harmless, and residue and hormone free by the Report issued by Heilongjiang Quarantine Station in China, and can be effectively used in green agricultural production.
The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements to the future financial performance of the Company. Although the Company believes that the expectations reflected in its forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful performance of internal plans, product development and acceptance, the impact of competitive services and pricing, or general economic risks and uncertainties.