Deyu Agriculture Acquires Additional Farmland
BEIJING, Dec. 21, 2010 /PRNewswire-Asia-FirstCall/ — Deyu Agriculture Corp. (OTC Bulletin Board: DEYU), a vertically integrated producer, processor, marketer and distributor of organic and other agricultural products made from corn and grains, today announced that it has entered into an agreement to acquire the land use rights to approximately 8,600 acres of farmland located in Jinzhong City, Shanxi Province. The Company paid $4.1 million in exchange for ownership rights for periods ranging from 40 to 47 years. The land will be used for the cultivation of organically grown grains.
“This acquisition is a key component of Deyu Agriculture’s strategic growth plan. The organically grown crops from this farmland will ensure that the Company has an adequate supply of high quality grains as we expand our product offering to include instant organic grain-based food,” said Mr. Jianming Hao, Chairman and Chief Executive Officer of Deyu Agriculture. “The tradition of the small farmer is time-honored in China and there is very little large scale farming. We have achieved scale through exclusive rights agreements to over 109,000 acres of some of China’s best agricultural land, including the ownership rights to 19,000 acres.”
About Deyu Agriculture Corp.
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. Deyu has access to over 109,000 acres of farmland in the Shanxi Province for breeding, cultivating, processing, warehousing, and distributing grain and corn products. Deyu has an extensive retail distribution network of more than 8,500 retail stores across China.
Deyu Agriculture’s web site 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’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 recently filed Prospectus filed pursuant to Rule 424(b)(3) with the SEC.
SOURCE Deyu Agriculture Corp.