SAN DIEGO & BEIJING--(BUSINESS WIRE)--Origin Agritech Limited (NASDAQ: SEED) (“Origin”)
today announced that it has acquired, through its subsidiary Beijing
Origin Seed Limited (“Beijing Origin”),
an additional 19% equity interest in Biocentury Transgene
(China) Co., Ltd. (“Biocentury”),
one of the leading biotechnology companies in China focused on producing
precursors for the genetically modified (“GM”)
seed industry. The consideration paid by Origin was RMB 16.7 million
($2.12 million at an exchange rate of RMB 7.8781 per $1.00). Together
with the 15% equity interest previously acquired, Beijing Origin
currently owns 34% of Biocentury.
Dr. Gengchen Han, Origin’s Chief Executive
Officer, commented, “Genetically modified
soybean and cotton seeds are widely used in the United States and other
countries to guard against insect damage and to increase yields.
Currently, the Chinese government allows GM cotton to be planted to
guard against borer damage. While GM food seeds have not yet been
approved in China, we believe that the potential exists for GM
technology to be applied to Chinese corn and rice seeds at some point in
the future. We believe that our investment in Biocentury will ensure
that Origin’s GM technology will be ready in
advance of any potential market that is created in China.”
ABOUT ORIGIN
Founded in 1997, Origin specializes in the research, development,
production, sale and distribution of hybrid corn, rice and cotton seeds
in China. The Company owns or leases facilities in, among other
locations, Beijing, Gansu, Henan, Helongjiang, Liaoning, Jilin, Hainan
and Sichuan provinces, and also has an office in San Diego, CA. Origin
launched its first entirely internally developed seed in 2003 and in
2004 introduced two new proprietary corn hybrids to the market. In 2005
Origin had three new proprietary corn hybrids and one new proprietary
cotton hybrid approved by the government registration office in China.
Origin anticipates that it will introduce close to 49 new proprietary
products into the Chinese government testing and approval cycle in 2006.
FORWARD LOOKING STATEMENT
Any forward looking statements contained in the press release may fall
within the definition of "forward-looking statements" under the Private
Securities Litigation Reform Act of 1995. Forward looking statements are
statements that are not historical facts. Such forward-looking
statements, based upon the current beliefs and expectations of Origin’s
management, are subject to risks and uncertainties, which could cause
actual results to differ from the forward looking statements. These
risks are detailed in Origin’s filings with
the Securities and Exchange Commission. The information set forth herein
should be read in light of such risks. Origin assumes no obligation to
update the information contained in this press release or filings.
