VANCOUVER, Dec. 21 /CNW/ - IND DairyTech Limited (TSXV:IND) ("IND" or the "Company") is pleased to announce the completion of the first tranche of its non-brokered private placement (the "Private Placement") of 36,271,800 Series A Preferred Shares (the "Preferred Shares") to SAIF Partners III L.P. ("SAIF") for gross proceeds of RMB 100 million (US$14,630,468), or CAN$0.43 per share. The Preferred Shares are subject to a hold period expiring on April 19, 2010. The net proceeds from the Placement will be used by the Company to fund its business expansion, working capital and capital expenditures in accordance with the Company's budget and business plan. Details of the Private Placement were previously announced by the Company on November 19, 2009. Further details will be set out in the Company's material change report which will be filed shortly.
The Company is also pleased to announce the appointment of Mr. Dong (Daniel) Yang as a director of the Company. Mr. Yang is SAIF's nominee and his appointment was effective on closing of the Private Placement. Mr. Yang has an extensive background in corporate finance and capital markets. He is currently a partner of SAIF Partners. He is also the independent director of Perfect World Co., Ltd. (NASDAQ: PWRD). Mr. Yang is a Chartered Financial Analyst (CFA) and has a Master of Accounting from the University of Southern California and a Bachelor of Engineering from Tsinghua University. The Company has granted to Mr. Yang, as a director of the Company, an option to acquire 417,125 common shares at an exercise price of CAN$0.55 per share. These options vested immediately upon issuance and will expire on December 18, 2010.
"SAIF is one of Asia's leading private equity firms and we view their investment in our Company as strong belief and confidence in our business," said Jesse Zhu, President, Chief Executive Officer and founder of the Company. "This investment will help the Company accelerate the Company's expansion including by build-up of its herd size, by establishing new farms, and by increasing the Company's production of milk in China. We look forward to working with SAIF and continuing to successfully grow our business."
ABOUT SAIF PARTNERS
SAIF Partners is a leading private equity firm that provides growth capital to companies in Asia. Its primary areas of focus include business services, financial services, communications, consumer services, education services, healthcare, and manufacturing. SAIF Partners was founded in 2001 and currently manages over US$2 billion across three funds. With over 60 investments over the last six years, SAIF Partners is one of the largest and most active funds in the region. SAIF Partners is a long-term investor with local teams in Hong Kong, China, and India.
ABOUT IND DAIRYTECH LIMITED
IND is an emerging raw milk producer in China that is seeking to become a leading provider of high quality raw milk to the Chinese dairy industry. To meet China's increasing demand for dairy products, the Company utilizes Canadian cattle genetics and North American farming practices to establish and develop its dairy herd in China. The Company plans to develop its herd in China through the use of advanced breeding techniques employing Canadian Holstein embryos that it intends to use to impregnate surrogate cows. These embryos have been created through in vitro fertilization using sexed semen to achieve an approximate 90% female birth rate. The use of these advanced breeding techniques is expected to allow the Company to rapidly expand its herd. The use of Canadian Holstein embryos also provides a practical solution to China's ban on the import of live Canadian cattle.
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SOURCE IND DAIRYTECH LIMITED
For further information: For further information: James Xiang, Chief Financial Officer, IND DairyTech Limited, (416) 886-1261, firstname.lastname@example.org