China Green Agriculture Inc (NYSE Amex: CGA), a producer and distributor of humic acid based liquid compound fertilizer said it priced an offering to sell 3.5 million shares of its common stock at US $7.15 per share, raising US$25 mln before expenses.
The shares are being sold under the company's previously filed shelf registration statement, declared effective on June 12 2009.
China Green Agriculture expects that the offering will yield net proceeds of approximately $23.7 million and plans to use the money to expand its existing research and development through the construction of new greenhouse facilities.
It estimates that these new facilities will require an aggregate investment of approximately US$38.6 million over the course of two years. The company anticipates using existing cash reserves, operating profits and bank loans to make up the difference between the total and the money raised via the latest offering.