Agria Announces Reverse Split and ADS Ratio Change
BEIJING -- (Marketwire) -- 01/08/13 -- Agria Corporation (NYSE: GRO)
(the "Company" or "Agria") today announced that its Board of
Directors has approved a combination, or reverse split, of the
ordinary shares currently issued by the Company at par value of
$0.0000001 per share such that the Company shall issue one (1)
ordinary share (each a "New Share" and collectively the "New Shares")
for every three (3) ordinary shares held by its shareholders ("Old
Shares") (the "Reverse Split"). The par value of each New Share will
be $0.0000003, equal to the aggregate of the par value of three Old
Shares combined. Additionally, the Board of Directors also approved
to change the ratio of its American Depositary Shares ("ADSs") to
ordinary shares from 1:2 to 1:1 (the "ADS Ratio Change"). The Company
is working with its ADS depositary, The Bank of New York Mellon, to
effectuate the ADS Ratio Change.
The Reverse Split requires approval of the shareholders of the
Company, and will be put up for vote at the next annual general
meeting of the Company, which is expected to be held in April 2013.
The Company will announce the exact date and agenda of the annual
general meeting once they have been determined. The Company expects
that the Reverse Split and ADS Ratio Change will be effectuated
contingent and simultaneously upon shareholder approval of the
As a result of the Reverse Split and ADS Ratio Change, the Company
expects the price of its ADSs to increase proportionally. Although
the purpose of the proposed Reverse Split and ADS Ratio Change is to
regain compliance with the minimum average closing price continued
listing standard of the NYSE, the Company can give no assurance that
this goal will be achieved if the Reverse Split and ADS Ratio Change
About Agria Corporation
Agria Corporation (NYSE: GRO) is an agricultural company with
operations in China and internationally. Agria operates three
principal business lines: China seeds, international seeds and
agriservices. In China, Agria engages in research and development,
production and sale of seed products, including field corn seeds,
edible corn seeds and vegetable seeds. Agria owns through Agria Asia
a 50.22% equit
y interest in PGG Wrightson, New Zealand's largest
agricultural services company. For more information about PGG
Wrightson, please visit www.pggwrightson.co.nz. For more information
about Agria Corporation, please visit www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These
statements, including the management's commentary, are made under the
"safe harbor" provisions of the U.S. Private Securities Litigation
Reform Act of 1995. These forward-looking statements can be
identified by terminology such as "will," "expects," "anticipates,"
"future," "intends," "plans," "believes," "estimates," "confident"
and similar statements. Agria may also make written or oral
forward-looking statements in its periodic reports to the U.S.
Securities and Exchange Commission on Forms 20-F and 6-K, etc., in
its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Statements that are not
historical facts, including statements about Agria's beliefs and
expectations, are forward-looking statements. Forward-looking
statements involve inherent risks and uncertainties. A number of
important factors could cause actual results to differ materially
from those contained in any forward-looking statement. Potential
risks and uncertainties include, but are not limited to, those
outlined in Agria's filings with the U.S. Securities and Exchange
Commission. All information provided in this press release is as of
the date of this announcement unless otherwise stated and Agria does
not undertake any obligation to update any forward-looking statement,
except as required under applicable law.
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