SHANGHAI, Dec. 9, 2010 /PRNewswire-Asia-FirstCall/ --
China-Biotics, Inc. ("China-Biotics" or "the Company"), (Nasdaq:
CHBT) the leading developer, manufacturer and distributor of
probiotics products in China,
today announced that it has redeemed $25
million in outstanding 4 percent senior convertible
promissory notes for cash two days before the December 11, 2010 maturity date.
The $1,000 notes were originally
issued on December 11, 2007. The
redemption price is 100 percent of the principal amount per
convertible note, plus accrued and unpaid interest as of the
redemption date of December 11, 2010.
The total redemption cost is $25
million in convertible note principal, plus approximately
$4.68 million in accrued and unpaid
interest. The convertible note principal is equivalent to 2.08
million common shares. With this redemption, the total diluted
share count for computation of EPS is now reduced to 22.3 million
shares. As of September 30, 2010,
cash and cash equivalents were $158.8
million.
Mr. Jinan Song, Chairman and CEO
of China-Biotics, commented, "We are very pleased to retire our
only interest-bearing debt instrument. Redemption of these
convertible notes enhances shareholder value through substantially
strengthening our balance sheet and creating immediate accretion of
our earnings per share. With our proven track record to
consistently generate free cash-flow, we plan to continue to
leverage our strong balance sheet to propel rapid sales growth and
fund strategic expansion in production going forward. We believe
this key milestone enables us to upgrade our shareholder base to
higher quality long-term investors."
About China-Biotics
China-Biotics, Inc. ("China-Biotics" or "the Company"), a
leading manufacturer of biotechnology products and supplements,
engages in the research, development, marketing and distribution of
probiotics dietary supplements in China. Through its wholly owned subsidiaries,
Shanghai Shining Biotechnology Co., Ltd. and Growing Bioengineering
(Shanghai) Co. Ltd., the Company
develops and produces a proprietary product portfolio. Currently,
its retail products are sold over the counter, mainly through large
distributors, to pharmacies and supermarkets in Shanghai and Jiangsu and Zhejiang provinces. The Company also sells
bulk products to institutional customers such as dairy and animal
feed producers as well as pharmaceutical companies. In February 2010, China-Biotics began its commercial
production in China's largest
probiotics production facility to meet the growing demand in
China. For more information,
please visit http://www.chn-biotics.com.
Safe Harbor Statement
The information in this release contains forward-looking
statements which involve risks and uncertainties, including
statements regarding the Company's capital needs, business strategy
and expectations. Any statements contained herein that are not
statements of historical fact may be deemed to be forward-looking
statements, which may be identified by terminology such as "may,"
"should," "will," "expect," "plan," "intend," "anticipate,"
"believe," "estimate," "predict," "potential," "forecast,"
"project," or "continue," the negative of such terms or other
comparable terminology. Readers should not rely on forward-looking
statements as predictions of future events or results. Any or all
of the Company's forward-looking statements may turn out to be
wrong. They can be affected by inaccurate assumptions, risks and
uncertainties and other factors which could cause actual events or
results to be materially different from those expressed or implied
in the forward-looking statements. In evaluating these statements,
readers should consider various factors, including the risks
described in "Item 1A. Risk Factors" beginning on page 17 and
elsewhere in the Company's 2010 Annual Report on Form 10-K. These
factors may cause the Company's actual results to differ materially
from any forward-looking statement. In addition, new factors emerge
from time to time and it is not possible for the Company to predict
all factors that may cause actual results to differ materially from
those contained in any forward- looking statements. The Company
disclaims any obligation to publicly update any forward-looking
statements to reflect events or circumstances after the date of
this document, except as required by applicable law.
Contact:
|
|
|
|
Travis Cai
|
|
Chief Financial Officer
|
|
China-Biotics, Inc.
|
|
traviscai@chn-biotics.com
|
|
|
|
Shiwei Yin/Dixon Chen
|
|
Grayling
|
|
646-284-9474
|
|
shiwei.yin@grayling.com
|
|
dixon.chen@grayling.com
|
|
|
SOURCE China-Biotics, Inc.