Jun. 29, 2010 (PR Newswire) --
BEIJING, June 29 /PRNewswire-Asia-FirstCall/ -- China Agritech, Inc.
(Nasdaq: CAGC) ("China Agritech", or the "Company"), a leading organic
compound fertilizer manufacturer and distributor in China, today announced
that it has received $10 million as a result of the exercise of common stock
warrants held by Carlyle Asia Growth Partners IV, L.P. and CAGP IV
Co-Investment, L.P., two affiliates of The Carlyle Group. The Carlyle Group
affiliates originally acquired the warrants in connection with the Company's
strategic private placement, consummated on October 20, 2009. A total of
1,857,024 newly issued shares of the Company's common stock were issued from
the warrant exercise. Carlyle Asia Growth Partners IV, L.P. and CAGP IV
Co-Investment, L.P., received 1,705,249 shares and 151,775 shares,
respectively, as a result of their exercise of the warrants.
Mr. Yu Chang, Chairman and Chief Executive Officer of China Agritech,
commented, "We are pleased that The Carlyle Group has increased its investment
in and commitment to China Agritech. This investment will immediately provide
better visibility to our financial statements, as there will no longer be
non-cash charges related to these warrants that will affect our earnings. With
the new proceeds to further strengthen our balance sheet, we have ample
capital to support our ongoing operations and execute our current expansion
plans, especially to begin the ramp up of our distribution network in China.
We look forward to extending our growth track record and maximizing value to
our long-term shareholders."
Mr. Wayne Tsou, Managing Director, Carlyle Asia Growth Partners, commented,
"We are encouraged by the Company's current operations and future outlook.
Carlyle always has been active in investing globally in technologies and
companies focused on sustainable development. We intend to continue to provide
resources and assistance to help China Agritech achieve its strategic goals
and expand in the Chinese agricultural market."
The Carlyle Group is a global alternative asset manager with $90.5 billion
of assets under management committed to 67 funds as of March 31, 2010. Carlyle
invests across three asset classes -- private equity, real estate and credit
alternatives -- in Africa, Asia, Australia, Europe, North America and South
America focusing on aerospace & defense, automotive & transportation, consumer
& retail, energy & power, financial services, healthcare, industrial,
infrastructure, technology & business services and telecommunications & media.
Since 1987, the firm has invested $60.6 billion of equity in 969 transactions.
The Carlyle Group employs more than 880 people in 19 countries.
