China Green Agriculture, Inc. (NYSE: CGA) (“China Green
Agriculture” or the “Company”), a company that mainly produces and
distributes humic acid-based compound fertilizers, other varieties
of compound fertilizers and agricultural products through its
subsidiaries in China, today provides a business update regarding
the pending recent acquisition of Lonestar Dream Inc., a Delaware
corporation (the “Lonestar Dream”), which focuses on cryptocurrency
sector, particularly bitcoin mining. Mr. Zhibiao Pan is Co-Chief
Executive Officer of the Company and is the sole shareholder of
Lonestar Dream. The Company devised a dual-business development
strategy in 2021, aimed at expanding into the cryptocurrency
industry. Subsequently, the Company diligently executed the
strategy, culminating in this significant acquisition.
CGA previously announced on December 27, 2023,
that it had entered into a stock purchase agreement to acquire
Lonestar Dream for an aggregate purchase price of $49 million. The
funding for this acquisition is being disbursed in three
installments, subject to customary closing conditions. The
shares of Lonestar Dream, owned by Zhibiao Pan, have been
transferred and registered under the name of CGA. For further
details on the transaction, please refer to the Company’s Form 8-K
filed with the Securities and Exchange Commission (“SEC”).
Lonestar Dream, founded in September 2021, has
steadily grown its presence in the cryptocurrency realm. Having
entered into a power lock-in contract in September 2021, securing
an impressive 600 Megawatts (“MW”) across two sites, Lonestar Dream
has already energized the first phase, totaling 100 MW, in August
2022. With plans to deliver an additional 500 MW by 2026, Lonestar
Dream has diversified its operations to include self-mining
endeavors and hosting services for clients, leveraging cutting-edge
mining technologies such as air cooling, hydro cooling, and its
proprietary immersion cooling system. Notably, Lonestar Dream's
immersion cooling system, developed in-house and with a pending
patent in the United States, exemplifies its commitment to
efficiency and innovation within the cryptocurrency mining
sector.
Beyond its cryptocurrency ventures, Lonestar
Dream has set its sights on future industrial expansion,
recognizing the pivotal role of energy in powering emerging
technologies like artificial intelligence. With plans to deploy
more energy infrastructure, including the establishment of its
first Energy Industrial Park by the end of 2024, Lonestar Dream is
poised to lay the groundwork for the growth of cryptocurrencies and
artificial intelligence. The proactive approach of Lonestar Dream
is evident in its completion of over 30 site visits and extensive
preliminary research in Texas. By strategically positioning itself
in key regions and actively engaging in research and development,
Lonestar Dream demonstrates its commitment to innovation and its
readiness to lead the charge in shaping the future of energy and
technology.
In developing the Energy Industrial Park,
Lonestar Dream is pioneering the deployment of the power ancillary
service market, encompassing energy retailing, dispatching, and
hedging. By seamlessly integrating the power ancillary service
market with cryptocurrency mining operations, it ensures efficiency
and synergy between the two sectors.
Recognizing the significance of the renewable
energy sector, Lonestar Dream has strategically included it in its
expansion plans. It has already embarked on initial ventures into
battery energy storage (BESS) and solar energy, laying the
groundwork for future developments in this promising field.
Overall, Lonestar Dream's ambitious vision for
industrial expansion, its strategic initiatives in energy
infrastructure, integration of renewable energy, and commitment to
innovation position it as a pioneering force in the convergence of
energy and technology.
Zhibiao Pan, Co-Chief Executive Officer of CGA,
expressed excitement about the strategic leap, stating, "The
acquisition of Lonestar Dream represents a strategic milestone for
China Green Agriculture, Inc. as we embark on our journey into the
burgeoning cryptocurrency and energy sectors. Leveraging Lonestar
Dream's expertise and infrastructure, we are poised to capitalize
on the opportunities presented by the evolving digital landscape.
With a steadfast commitment to innovation and sustainability, we
aim to drive long-term value for our stakeholders while
contributing to the advancement of the cryptocurrency and energy
industries."
Mr. Zhuoyu Li, Chairman and CEO of CGA,
emphasized the strategic significance of the acquisition,
highlighting Lonestar Dream's experienced management team,
extensive product pipeline, and large customer base as key assets
propelling CGA's expansion in the cryptocurrency industry. He
stated, "The acquisition of Lonestar Dream represents a significant
step forward in CGA’s business expansion. We are diligently working
towards its completion and will provide timely updates to our
shareholders and the broader public regarding the progress of this
strategic initiative. I eagerly anticipate the growth opportunities
this exciting new chapter brings for our Company."
About China Green Agriculture,
Inc.
The Company 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”) and variable interest entities. In 2023, the Company
started to purchase digital asset mining machines and established
Antaeus Tech Inc. (“Antaeus”) in the State of Delaware and mined
digital assets bitcoins in the State of Texas. 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; interest rate and
currency exchange rate fluctuations; the impact of the recent
global outbreak of novel coronavirus disease (COVID-19);
technological advances, new products attained by competitors;
challenges inherent in new product development; the company’s
ability to accurately predict future market conditions;
manufacturing difficulties or delays; financial instability of
economies and sovereign risk; dependence on the effectiveness of
the company’s protections for innovative products; the exposure to
litigation and/or regulatory actions, 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 regulations.
For more information, please contact:
China Green Agriculture, Inc.Tel:
+86-29-88266383Email: info@cgagri.com
SOURCE China Green Agriculture, Inc.
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