Followers | 2768 |
Posts | 77901 |
Boards Moderated | 1 |
Alias Born | 05/10/2007 |
Tuesday, September 27, 2016 4:12:39 PM
Origin Agritech Limited (MM) (NASDAQ:SEED)
BEIJING, Sept. 27, 2016 /PRNewswire/ -- Origin Agritech Ltd. (Nasdaq: SEED) today announced the company has entered into a definitive agreement to sell its proprietary China-based commercial corn seed production and distribution business for RMB 400 million (approximately USD $60 million) to Beijing Shihui Agricultural Development Co, Ltd ("Beijing Shihui").
This is the next phase in management's plan to establish Origin as a global seed germplasm and biotech trait leader. Origin will retain its corn breeding and biotech research and development capabilities, which include modern laboratories, extensive field testing networks and off-season winter nursery in Hainan, to expand and pursue germplasm and trait licensing opportunities. Through Xinjiang Originbo, Origin also will maintain its "Green Pass" status, allowing it the competitive advantage of introducing new hybrid varieties to the Chinese market through an expedited government approval process.
This transaction is subject to customary closing conditions and shareholder approval. It is expected to close in the first quarter of 2017.
Following a strategic review by the special committee of the board of directors, it was determined that the sale of Origin's proprietary commercial seed business would strengthen its balance sheet and enable it to focus on biotechnology trait and seed germplasm research and development.
"The sale and repositioning of Origin's commercial seed business represents a significant step in evolving the company's strategic direction and positions Origin for a stronger future," said Bill Niebur, Origin CEO. "This transition will allow us to emphasize biotechnology and strategic partnerships both within China and around the globe. We believe the sale of these assets to Beijing Shihui realizes the value of our commercial seed business. We will utilize the proceeds to accelerate the licensing of our biotech traits and seed germplasm to other seed companies in China. We will also develop our non-genetically modified corn and soybean business in the United States, making what we believe will be a stronger and more attractive business in the years to come."
Under the terms of this deal, the acquirer of the China-based commercial seed business will enter into separate license agreements to pay Origin a royalty stream for the present and future product portfolio and a technology access fee for the research and development effort that Origin provides going forward in the areas of product discovery and development, hybrid registration, trait integration and intellectual property protection.
The transaction includes all or substantial equity interests in Linze Origin Seed Limited, Changchun Origin Seed Technology Development Limited and DenongZhengcheng Seed Limited, the Linze branch and Zhengzhou branch of Beijing Origin Seed Limited, and certain real estate owned by Beijing Origin Seed Limited.
"Through this transaction and the development of our North American non-GM business, we believe that we are setting the stage for compelling growth opportunities," Niebur said. "We have a very exciting future ahead of us and look forward to providing our investors with additional updates on our business in the upcoming weeks and months."
Duff and Phelps served as the special committee's financial advisor and Davis Polk & Wardwell LLP as legal advisor in connection with this transaction.
Beijing Shihui is an internet agricultural enterprise that provides agricultural products and technology services to farmers, suppliers and agriculture-related enterprises in China.
Conference Call
The Company will host a teleconference on Wednesday, September 28, 2016, at 8:30 a.m. ET / 8:30 p.m. Beijing time to discuss this transaction and answer questions from investors. To participate in the call, please dial the following numbers approximately five minutes prior to the scheduled start time.
US Toll Free:
1-888-346-8982
International Toll:
1-412-902-4272
Mainland China Toll Free:
4001-201203
Hong Kong Toll Free:
800-905945
A webcast will also be available in the 'Events' tab of the Company's investor relations website at http://www.originseed.com.cn/en/.
A replay of the call will be available shortly after the conference call through October 5, 2016. The dial-in numbers for the replay are:
US Toll Free:
1-877-344-7529
International Toll:
1-412-317-0088
Replay Access Code:
10093446
Recent SEED News
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 09/03/2024 12:36:59 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/27/2024 11:46:04 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 08/27/2024 11:43:16 AM
- Origin Agritech Appoints Mr. Weibin Yan as Chief Executive Officer and Member of the Board of Directors; Dr. Gengchen Han to Remain as Chairman of the Board • PR Newswire (US) • 08/23/2024 01:00:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 08/08/2024 02:41:02 PM
- Origin Agritech Appoints Patrick Cheng as Chief Financial Officer and Board Director • PR Newswire (US) • 08/08/2024 01:00:00 PM
- Origin Agritech Appoints Li Yang as Chief Operating Officer and Board Director • PR Newswire (US) • 08/07/2024 01:00:00 PM
- Origin Agritech Announces Long-Term Revenue Projections Across Key Product Lines Through 2029 • PR Newswire (US) • 07/23/2024 12:00:00 PM
- Origin Agritech Chairman and CEO Dr. Gengchen Han Provides Business Updates and Answers Questions from Investors • PR Newswire (US) • 07/11/2024 01:00:00 PM
- Origin Agritech to Hold Business Update Investor Webcast on Thursday, July 11 at 8 a.m. ET • PR Newswire (US) • 06/20/2024 12:00:00 PM
- Origin Agritech Announces Revolutionary Gene Editing Breakthrough, Featured in Top Science Journal Nature • PR Newswire (US) • 06/12/2024 04:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 06/03/2024 11:30:30 AM
- Origin Agritech Reports Strong Financial Results for the First Half of FY2024 and Highlights Significant Advancements in GMO Corn Approval • PR Newswire (US) • 05/15/2024 11:30:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/14/2024 01:04:09 PM
- Origin Agritech Receives GMO Safety Certificate for its Triple Stack Maize • PR Newswire (US) • 05/09/2024 12:30:00 PM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 05/07/2024 09:00:45 PM
- Origin Agritech Provides First Half Revenue Forecast and Updates Advancements in Hybrids and GMO Development • PR Newswire (US) • 04/02/2024 11:30:00 AM
- Origin Agritech Announces Breakthrough in High-Yield Corn Production Through Gene Editing • PR Newswire (US) • 03/20/2024 12:00:00 PM
- Origin Agritech Announces Breakthrough in Corn Hybrid Development with Wild Corn Gene Integration • PR Newswire (US) • 02/27/2024 01:30:00 PM
- Origin Agritech Grows Revenue by 77% Year-Over-Year, Records Net Income of $8.7 Million • PR Newswire (US) • 02/21/2024 12:00:00 PM
- Origin Agritech Regains Compliance with Nasdaq Listing Standards • PR Newswire (US) • 02/20/2024 12:00:00 PM
- Form 20-F - Annual and transition report of foreign private issuers [Sections 13 or 15(d)] • Edgar (US Regulatory) • 02/15/2024 09:31:36 PM
- Form NT 20-F - Notification of inability to timely file Form 20-F • Edgar (US Regulatory) • 01/31/2024 02:53:39 PM
- Origin Agritech Announces Appeal of Nasdaq Delisting Letter • PR Newswire (US) • 01/18/2024 11:00:00 AM
- Form 6-K - Report of foreign issuer [Rules 13a-16 and 15d-16] • Edgar (US Regulatory) • 01/17/2024 09:30:15 PM
FEATURED Cannabix Technologies and Omega Laboratories Inc. Advance Marijuana Breathalyzer Technology - Dr. Bruce Goldberger to Present at Society of Forensic Toxicologists Conference • Sep 24, 2024 8:50 AM
FEATURED Integrated Ventures, Inc Announces Strategic Partnership For GLP-1 (Semaglutide) Procurement Through MedWell USA, LLC. • Sep 24, 2024 8:45 AM
Avant Technologies Accelerates Creation of AI-Powered Platform to Revolutionize Patient Care • AVAI • Sep 24, 2024 8:00 AM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM