American Dairy Completes $2 Million Common Stock Private Placement.BEIJING -- American Dairy, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :ADIY), one of the leading producers and distributors of milk powder and soybean soybean, soya bean, or soy pea, leguminous plant (Glycine max, G. soja, or Soja max) of the family Leguminosae (pulse family), native to tropical and warm temperate regions of Asia, where it has been products in China, announces the completion of a $2 million private placement of its common stock. Effective December 6, 2004, American Dairy, Inc. closed an unregistered offering of 517,429 restricted shares of its common stock and warrants that was made to an existing institutional shareholder of American Dairy, Inc. as defined by Rule 501(a) of Regulation D promulgated prom·ul·gate tr.v. prom·ul·gat·ed, prom·ul·gat·ing, prom·ul·gates 1. To make known (a decree, for example) by public declaration; announce officially. See Synonyms at announce. 2. under the Securities Act of 1033, as amended (the "Act"). The offering was made in reliance upon Section 4(2) of the Act. The offering realized $2,000,000 in total subscriptions for its Common Stock and warrants. In connection with the offering, American Dairy, Inc. issued warrants to the institutional investor Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. to purchase a total of 258,715 shares of its Common Stock at an exercise price of $3.80 per share for a term of 2 years; and issued warrants to its underwriter underwriter n. a company or person which/who underwrites an insurance policy, issue of corporate securities, business, or project. (See: underwrite) UNDERWRITER, insurances. One who signs a policy of insurance, by which he becomes an insurer. , American Eastern Securities, to purchase 114,286 shares of the Common Stock of the Company at an exercise price of $2.70 per share for a term of 2 years. As a result, total common outstanding shares for American Dairy, Inc. has increased from 12,984,925 to 13,556,354 shares. The proceeds ($2 million) will be used primarily towards the payment of the new walnut powder processing facility of the Company, and some for working capital. The new walnut powder processing plant is expected to commence production by March of 2005. Certain of the statements made herein constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties. In such instances, actual results could differ materially as a result of a variety of factors including the risks associated with the effect of changing economic conditions in The People's Republic People's Republic n. A political organization founded and controlled by a national Communist party. of China, variations in cash flow, reliance on collaborative retail partners, and on new product development, variations in new product and service development, risks associated with rapid technological change, and potential of introduced or undetected flaws and defects in products and services and other risk factors detailed in forms filed with the Securities and Exchange Commission from time to time. |
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