Deyu Agriculture Corp. Terminates VIE Control Agreements With Deyufarm
BEIJING, Jan. 6, 2012 /PRNewswire-Asia-FirstCall/ — Deyu Agriculture Corp. (OTCBB: DEYU) (the “Company“), a Beijing, China-based vertically integrated producer and distributor of organic and non-organic corn and grain products, announced today that it has terminated its VIE control agreements with Deyufarm, which had been a part of Deyu’s deep processed grain division.
“Maximizing shareholder value is our utmost priority,” said Jianming Hao, Chief Executive Officer and Chairman of Deyu. “Our investors had been experiencing a loss due to the current financial and market challenges facing Deyufarm, and after several meetings with our legal counsel and board of directors, we believe that it is in the best interest of our Company and our investors to end our relationship with Deyufarm. We are confident that our core business, corn products, which more than doubled its sales last quarter, and our simple processed grain division, which increased its revenues more than 500% last quarter, will help us maintain our progress as we look for ways to improve our deep processed grain division and to further expand and enhance our business in general.”
Deyu’s management team is currently exploring several post VIE strategies that focus on leveraging and expanding the Company’s distribution network of over 15,000 stores across China. “Our extensive retail network is one of our key competitive advantages,” said Mr. Hao, “and by further capitalizing on it and maintaining the momentum we are experiencing in both our corn and simple processed grain businesses, we are confident that we can achieve greater success and provide larger returns to our investors in the future.”
About Deyu Agriculture
Deyu Agriculture Corp. is a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains operating in the Shanxi Province of the People’s Republic of China. The Company has access to over 109,000 acres of farmland in the Shanxi Province for breeding, cultivating, processing, warehousing, and distributing grain and corn products. The Company has an extensive retail distribution network of more than 15,000 retail stores across China. The Company’s website is located at www.deyuagri.com.
Safe Harbor Statements
This press release contains forward-looking statements made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon the current plans, estimates and projections of Deyu Agriculture Corp.’s management and are subject to risks and uncertainties, which could cause actual results to differ from the forward looking statements. Such statements include, among others, those concerning market and industry segment growth and demand and acceptance of new and existing products; any projections of sales, earnings, revenue, margins or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding future economic conditions or performance; uncertainties related to conducting business in China, as well as all assumptions, expectations, predictions, intentions or beliefs about future events. Therefore, you should not place undue reliance on these forward-looking statements. The following factors, among others, could cause actual results to differ from those set forth in the forward-looking statements: business conditions in China, general economic conditions; geopolitical events and regulatory changes, availability of capital, changes in the agricultural industry, the Company’s ability to maintain its competitive position. Additional Information regarding risks can be found in the Company’s Quarterly Report on Form 10-Q and in the Company’s Prospectus filed pursuant to Rule 424(b)(3) with the SEC.
Mr. Kevin Fickle, President
NUWA Group LLC.
Mr. Charlie Lin, Chief Financial Officer
Deyu Agriculture Corp.
SOURCE Deyu Agriculture Corp.