Tianli Agritech, Inc. Announces $3.2 Million Private Placement Transaction
WUHAN, China, Sept. 30, 2013
WUHAN, China, Sept. 30, 2013 /PRNewswire/ --Tianli Agritech, Inc.
(NASDAQ:OINK) ("Tianli" or the "Company"), a leading producer of breeder hogs,
market hogs and black hogs, headquartered in Wuhan City, China, today
announced that the Company has agreed to sell 2,760,000 shares of its common
stock at a price of $1.16 per share ($3.2 million in the aggregate) to Mr. Wei
Gong (the "Investor"), a citizen of the PRC. The offering price represents an
approximately 43% premium over Tianli's share price at last Friday's market
close of $0.81.
To comply with Nasdaq Marketplace Rule 5635(d) which limits the number of
shares of the Company's common stock that can be sold in a private placement
to no more than 20% of the 11,194,000 shares outstanding, subject to certain
exceptions as provided in the Nasdaq Marketplace Rules, the Company sold
2,238,000 shares of its common stock to the Investor for a total consideration
of $2,596,080 on September 28, 2013. The balance, 522,000 shares with a total
consideration of $605,520, is expected to be completed within three days after
the first to occur of (1) the receipt by the Company from Nasdaq of an
acknowledgement that it is exempt from Marketplace Rule 5635(d) or (ii) the
receipt by the Company of a vote of its shareholders approving the sale by the
Company to the Investor of a number of shares greater than 20% of the shares
Mrs. Hanying Li, Chairwoman and CEO of Tianli Agritech commented, "We are very
pleased to welcome Mr. Wei Gong to be a substantial shareholder of Tianli and
appreciate the support of our new and existing investors. As a prominent
investor, a prolific author, and one of the pioneers of incubation centers in
China, Mr. Gong currently serves as the Director of Wuhan East Lake Hi-tech
Innovation Center, a position he has been holding since 1987. We believe the
value of having Mr. Gong as our substantial shareholder is both financial and
strategic and expect to benefit tremendously from Mr. Gong's involvement in
Mr. Wei Gong stated, "We believe China's continuing transition from export-
and investment- driven growth to domestic consumption-driven growth bodes well
for the hog industry.With its well established market position, steadily
growing Black Hog Program in Enshi Prefecture, and quickly expanding retail
presence, in our view Tianli is well positioned to further strengthen its
leading market position in the Wuhan market and take full advantage of the
growing trend in pork consumption in China. With the stock trading at just
0.2x of its book value, we are thrilled to have the opportunity to take a
large position in the Company at a very reasonable price. We look forward to a
mutually beneficial relationship with Mrs. Li and the Tianli team for many
years to come."
About Tianli Agritech, Inc.
Tianli Agritech, Inc. is in the business of breeding, raising and selling
breeder and market hogs in China and is developing a retail channel for its
pork products including high-value, black hog meat. The Company is focused on
growing high quality hogs for sale for breeding and meat purposes. The Company
conducts genetic, breeding and nutrition research to steadily improve its
This news release contains forward-looking statements as defined by the
Private Securities Litigation Reform Act of 1995. Forward-looking statements
include statements concerning plans, objectives, goals, strategies, future
events or performance, and underlying assumptions and other statements that
are other than statements of historical facts. These statements are subject to
uncertainties and risks including, but not limited to, product and service
demand and acceptance, changes in technology, economic conditions, the impact
of competition and pricing, government regulation, and other risks contained
in reports filed by the company with the Securities and Exchange Commission.
All such forward-looking statements, whether written or oral, and whether made
by or on behalf of the company, are expressly qualified by this cautionary
statement and any other cautionary statements which may accompany the
forward-looking statements. In addition, the company disclaims any obligation
to update any forward-looking statements to reflect events or circumstances
after the date hereof.
For more information, please contact:
Weitian Group LLC
SOURCE Tianli Agritech, Inc.
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