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CNAAS and Agria Enter Strategic Co-Operation; Agria to Make Investment in Zhongn
Oct 28, 09 07:51AM
BEIJING--(Marketwire - 10/28/09) - Agria Corporation (NYSE:GRO - News) (the "Company" or "Agria"), today announced it has entered into a strategic co-operation framework agreement with the China National Academy of Agricultural Sciences ("CNAAS") providing for future co-operation across the spectrum of agricultural research. Agria has also entered into an investment agreement with CNAAS and its affiliates, under which Agria will invest RMB35 million into Beijing Zhongnong Seed Industry Co., Ltd ("Zhongnong"), a company wholly owned by CNAAS and its affiliates. Zhongnong has priority rights to accept the transfer of all existing and future cultivated seed varieties owned by CNAAS and its affiliates for the purposes of commercialization.
Established in 1957, CNAAS is the largest agricultural research organization in China. It comprises 39 research institutes across the country covering all major areas of the agricultural sector including advanced research in the development of both horticulture and livestock. CNAAS employs over 5,000 scientists and research engineers, many of whom have been awarded national academic accolades. It also encompasses the Graduate School of the Chinese Academy of Agricultural Sciences, the only agricultural research institution in China that can confer Ph.D. level degrees in agricultural sciences. Through its network of research institutes, CNAAS controls one of the largest seed banks in the world.
Xie Tao, Agria's Chief Executive Officer, commented: "The strategic co-operation framework agreement and investment in Zhongnong are the culmination of a long and deep relationship between Agria and CNAAS. Agria will have valuable access to many of the leading scientists in China in agricultural development, as well as access to one of the world's largest seed banks. We believe the combination of the research capabilities achieved through this transaction combined with the international farming operational strengths derived from our partnership with PGG Wrightson will unlock many opportunities for Agria, integral to our business strategy going forward."
Agria Corporation (NYSE:GRO - News) is an innovative China-based agri-solutions provider focusing on research and development, production and distribution of three different types of upstream agricultural products. Its diversified portfolio of products comprises corn seeds, sheep breeding and seedlings, including proprietary products. For more information about Agria Corporation, please visit www.agriacorp.com.
Safe Harbor Statement:
This announcement contains forward-looking statements. These statements, including the expected benefits of the investment in Zhongnong and co-operation with CNAAS, are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Agria may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission on Forms 20-F and 6-K, etc., in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Agria's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. Potential risks and uncertainties include, but are not limited to, those risks outlined in Agria's filings with the U.S. Securities and Exchange Commission. All information provided in this press release is as of the date of this announcement unless otherwise stated, and Agria does not undertake any obligation to update any forward-looking statement, except as required under applicable law.