HARBIN, China, July 25, 2011 (GLOBE NEWSWIRE) -- China Modern Agriculture Inc. (OTCBB:CMCI), a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information, announced that it has entered into a Letter of Intent with Harbin Jinshangjing Technology Investment Co., Ltd. ("Jinshangjing Company" hereinafter) on July 10th, 2011, to purchase the 100% equity ownership of Shangzhi Yulong Cattle Co., Ltd. ("Shangzhi Yulong" hereinafter) held by Jinshangjing Company.
Because the appraisal value of the proposed transferred equity has not been ultimately confirmed, the final equity transfer price will be determined and stated clearly in the formal Equity Transfer Agreement. In accordance with the Letter of Intent, within 15 days from the signing date of this Letter of Intent, China Modern Agriculture shall pay an early security deposit of equity transfer to Jinshangjing Company with the total amount of RMB 14MM. The final Equity Transfer Agreement will be signed within 90 days from the signing date of this Letter of Intent.
The acquisition is expected to add approximately $4.5MM to the net profit for the year ending June 30, and the annual production capacity of fresh milk will be increased by about 30,000 tons.
About China Modern Agricultural Information
China Modern Agricultural Information, Inc. is a high-tech livestock company specializing in the breeding of cows and calves, the production and sale of milk, the sale of organic fertilizer, as well as the promotion of agricultural information. For more information please visit http://www.hljzhongxian.com/zx/eng_zx.
Cautionary Statement Regarding Forward Looking Information
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 the success of our investments, risks and uncertainties regarding fluctuations in earnings, our ability to sustain our previous levels of profitability including on account of our ability to manage growth, intense competition, wage increases in China, our ability to attract and retain highly skilled professionals, time and cost overruns on fixed-price, fixed-time frame contracts, client concentration, our ability to successfully complete and integrate potential acquisitions, withdrawal of governmental fiscal incentives, political instability and regional conflicts and legal restrictions on raising capital or acquiring companies outside China. Additional risks that could affect our future operating results are more fully described in our United States Securities and Exchange Commission filings including our 8K/A dated March 31, 2011, and other recent filings. 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.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.