China Agritech (CAGC) today announced the following statement in response to an LM Research article delivered on February 3.
A number of analysts, professional investors, industry experts, and the Company’s independent accountants have toured the Company’s facilities in the past. The Company has never received any challenges regarding either the existence or the scale of production of its facilities. In addition, management has confirmed that the Harbin facility has never been listed for sale. The sales growth of the Company’s organic fertilizers remains robust. In response to the short sellers’ allegation that the Company’s distribution centers are non-existent, there have already been 10 newly established distribution centers in Henan Province alone. In response to the short sellers’ allegation that the Company’s subsidiary YiNong does not exist, YiNong in fact is headquartered in Beijing with strong governmental support. In August 2010, the Company announced that it had entered into a strategic agreement with the Beijing Municipal Government to establish within Beijing the headquarters of its nationwide network of distribution centers. In response to the short sellers’ allegation that the Company does not have a license to manufacture granular fertilizer, the government-issued production license number for China Agritech’s granular fertilizers is clearly marked on each of our product’s packaging.
At last check, CAGC was up 34 cents, or 3.45%, to $10.19.
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