DES MOINES, Iowa, Aug. 24, 2017 /PRNewswire/ -- Origin Agritech
Ltd. (Nasdaq: SEED) ("the Company" or "Origin"), an agricultural
biotechnology trait and corn seed provider, today announced that it
has received the first payment from the Company's RMB 421 million sale of its proprietary
China-based commercial corn seed
production and distribution business, originally announced on
September 27, 2016.
The consideration for the first part of the asset sale will be
paid by Beijing Shihui Agricultural Development Co, Ltd ("Beijing
Shihui") in several tranches aggregating RMB 221 million, including RMB 152 million paid today from the buyer in a
combination of cash and assumption of debt. Beijing Shihui will
make two additional payments totaling RMB 69
million to be paid prior to November
15, 2017. A second and final payment of up to
RMB 200 million, including the
initial RMB 10 million down payment,
subject to certain set offs is expected no later than December 15, 2017.
"This marks a critical milestone achievement in our journey to
becoming a leading international corn seed technology company,"
said Dr. Bill Niebur, Origin CEO.
"The proceeds significantly accelerate and expand our capabilities
to develop and deliver corn biotechnology traits and corn product
licensing business within China
and around the globe. All current indicators point to a
near-term commercial launch for the projected USD 5-6 billion GM-traited corn seed market in
China. Origin's leading corn
germplasm collection and biotech trait platform are well positioned
to monetize the novel business opportunity and strong customer
demand for superior products."
"China remains the primary
focus for Origin near term. Our portfolio of collaborations with
leading agricultural multinationals, Chinese domestic seed
companies and leading academic institutions uniquely positions us
to realize the near and long term commercial potential of our
20-years' investment in serving
farmers through biotechnology and genetics."
"We see very exciting opportunities in the coming months and
years with this new business model and we look forward to sharing
more news on our growth story with investors," concluded
Niebur.
Under the terms of the Beijing Shihui agreement, Origin will
retain its corn breeding and biotech research programs; all
intellectual properties, which include an industry-leading corn
germplasm collection, GM trait portfolio and modern laboratories;
extensive field testing networks; and off-season winter nursery in
Hainan, with which Origin plans to
expand and pursue germplasm and trait licensing opportunities.
Origin will also maintain its "Green Pass" status, allowing the
competitive advantage of introducing new hybrid varieties to the
Chinese market through an expedited and more predictable government
approval process.
About Origin Agritech Ltd.
Origin Agritech Limited, founded in 1997 and headquartered in
Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is China's leading agricultural biotechnology
company, specializing in crop seed breeding and genetic
improvement, seed production, processing, distribution, and related
technical services. Leading the development of crop seed
biotechnologies, Origin Agritech's phytase corn was the first
transgenic corn to receive the Bio-Safety Certificate from
China's Ministry of Agriculture.
Over the years, Origin has established a robust biotechnology seed
pipeline including products with glyphosate tolerance and pest
resistance (Bt) traits. Origin operates production centers,
processing centers and breeding stations nationwide with sales
centers located in key crop-planting regions. Product lines are
vertically integrated for corn, rice and canola seeds. For further
information, please visit the Company's website at:
http://www.originseed.com.cn or
http://www.originseed.com.cn/en/.
Forward-Looking Statements
This communication contains "forward-looking statements" within
the meaning of the federal securities laws, including Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. In this context,
forward-looking statements often address expected future business
and financial performance and financial condition, and often
contain words such as "expect," "anticipate," "intend," "plan,"
"believe," "seek," "see," "will," "would," "target," similar
expressions, and variations or negatives of these words.
Forward-looking statements by their nature address matters that
are, to different degrees, uncertain, such as statements about the
consummation of the proposed transaction and the anticipated
benefits thereof. Forward-looking statements are not guarantees of
future performance and are based on certain assumptions and
expectations of future events which may not be realized.
Forward-looking statements also involve risks and uncertainties,
many of which are beyond the company's control. Some of the
important factors that could cause the company's actual results to
differ materially from those projected in any such forward-looking
statements are: failure to develop and market new products and
optimally manage product life cycles; ability to respond to market
acceptance for our seed products; rules, regulations and policies
affecting products based on biotechnology; outcome of significant
litigation and environmental matters, including realization of
associated indemnification assets, if any; failure to appropriately
manage process safety and product stewardship issues; changes in
laws and regulations or political conditions; global economic and
capital markets conditions, such as inflation, interest and
currency exchange rates; security threats, such as acts of
sabotage, terrorism or war, natural disasters and weather events
and patterns which could affect products for the agriculture
industry; and ability to protect and enforce the company's
intellectual property rights. The company undertakes no duty to
publicly revise or update any forward-looking statements as a
result of future developments, or new information or otherwise,
should circumstances change, except as otherwise required by
securities and other applicable laws.
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SOURCE Origin Agritech Limited