XI'AN, China, April 16, 2012
/PRNewswire-Asia-FirstCall/ -- China Green Agriculture,
Inc. (NYSE: CGA; "CGA" or the "Company"), a producer and
distributor of humic acid-based compound fertilizers, blended
fertilizers, organic compound fertilizers, mixed organic-inorganic
compound fertilizers, slow-release fertilizers, highly-concentrated
water soluble fertilizers and agricultural products, such as
top-grade fruits, vegetables, flowers and colored seedlings through
its wholly-owned subsidiaries in China, today announced that
all of the shareholder derivative actions pending against certain
of the Company's current and former officers and directors and its
auditor have been resolved and dismissed.
On March 30, 2012, the judge of
the First Judicial District Court of the State of Nevada in and for Carson City (the "State Court") issued an
Order of Final Approval of the Settlement in the three consolidated
shareholder derivative actions pending before the State Court and
dismissed those actions. The dismissal and judgment was entered on
April 5, 2012. As a result of this
settlement, all the derivative claims are released. The plaintiffs'
legal fees and expenses of $650,000 have been paid by the
defendants' insurers.
In connection with the settlement of the derivative claims, on
April 5, 2012, the Judge in the
United States District Court of Nevada (the "Nevada Federal Court") dismissed
the federal derivative action.
The dismissal of the four derivative actions does not involve
the class action lawsuit filed in the Nevada Federal
Court on October 15, 2010.
"We are pleased with the resolution of the derivative actions
and the approval of the settlement. The settlement achieved is a
recognition of the continued strengthening of our corporate
governance," said Mr. Tao Li, Chairman and Chief Executive Officer
of the Company. "The conclusion of the derivative actions is a
significant step forward in our efforts to focus on moving the
Company forward and maximizing shareholders' value."
About China Green Agriculture, Inc.
The Company mainly produces and distributes humic acid-based
compound fertilizers, other varieties of compound fertilizers and
agricultural products through its wholly-owned subsidiaries, i.e.:
Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd.
("Jinong"), Beijing Gufeng Chemical Products Co.,
Ltd. ("Gufeng"), Xi'an Jintai Agriculture Technology
Development Company ("Jintai") and Xi'an Hu County Yuxing
Agriculture Technology Development Co., Ltd. ("Yuxing").
Jinong produced and sold 152 different kinds of fertilizer products
as of December 31, 2011, all of which are certified by the PRC
government as Green Food Production Materials, as stated by
the China Green Food Development Center. Jinong currently
markets its fertilizer products to private wholesalers and
retailers of agricultural farm products in 22 provinces, four
autonomous regions, and three central-government-controlled
municipalities in the PRC. Jinong had 699 distributors
in China as of December 31, 2011. Gufeng, and its
wholly-owned subsidiary, Beijing Tianjuyuan Fertilizer Co.,
Ltd., are Beijing-based producers of compound fertilizer,
blended fertilizer, organic compound fertilizer, and mixed
organic-inorganic compound fertilizer. As of December 31,
2011, Gufeng produced and sold 313 different kinds of fertilizer
products, and had 177 distributors in China. For more
information, visit http://www.cgagri.com. The Company
routinely posts important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning the Company's business, products and financial results.
The Company's actual results may differ materially from those
anticipated in the forward-looking statements depending on a number
of risk factors including, but not limited to, the following:
general economic, business and environment conditions, development,
shipment, market acceptance, additional competition from existing
and new competitors, changes in technology, the execution of its
ten-year growth plan, a satisfactory conclusion of the pending
securities class action litigation and various other factors beyond
the Company's control. All forward-looking statements are expressly
qualified in their entirety by this Safe Harbor Statement and the
risk factors detailed in the Company's reports filed with the
SEC. China Green Agriculture undertakes no duty to revise
or update any forward-looking statements to reflect events or
circumstances after the date of this release, except as required by
applicable law or regulation.
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For more
information, please contact:
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China
Green Agriculture, Inc.
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Ms. Jane
Zuo (English and Chinese)
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Investor
Relations Manager
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Tel:
+86-186-1842-8899
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Email: jane.zuo@cgagri.com
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SOURCE China Green Agriculture, Inc.