Bodisen Biotech Sees Accelerated Earnings Growth in 2006,
Company Has a Strong Balance Sheet with Approximately $26 Million in
Monday March 20, 8:00 am ET
Has Sufficient Capital to Fund Current Growth Plan in a Favorable
NEW YORK--(BUSINESS WIRE)--March 20, 2006--Bodisen Biotech, Inc.,
(AMEX:BBC, London AIM:BODI, website: /) the
first China based environmentally friendly bio fertilizer company
listed on a US stock exchange, and dually listed in London,
announced today that on March 15, 2006, the Company completed
financing of $5,322,506 by issuing 380,179 restricted shares of
common stock of the Company at $14.00 per share to institutional
investors in a private placement pursuant to Regulation S. Issuance
of these new shares are subject to approval by the American Stock
Exchange and admission to the London AIM market. The proceeds from
this financing will be used to fulfill repayment obligations of a $5
million short term note that the Company entered in December 2005
which was used to fund raw materials purchases. The issuance of
these additional shares represents less than $0.01 per share in
Bodisen will have a total of 18,176,917 shares outstanding upon
completion of the above-noted transactions. Bodisen has no further
outstanding debts (other than customary trade debts) on its balance
sheet. Based on the current market environment, the Company believes
that it has sufficient capital to fund its current growth plan.
Karen Qiong Wang, Chief Executive Officer of Bodisen commented,
"Bodisen is focused on strengthening its balance sheet in
anticipation of accelerated earnings growth in 2006 and beyond. With
approximately $26 million in cash and our current growth plan in
place, we do not anticipate the need to raise any additional
capital. Bodisen is the largest organic fertilizer company in China
with an extensive nationwide distribution network. Our plans include
having two new production facilities fully operational before next
year's planting season, which could potentially enable us to double
our revenues in 2007 compared to 2006, while targeting on average
net profit margin of approximately 30% of sales."
Commenting on China's chemical fertilizer industry, Ms. Wang
continued: "With farmers continuing to shift from the use of
chemical fertilizers to environmentally friendly bio-active
fertilizers, such as Bodisen's - which increase farmers' crop yields
by as much as 35% while restoring soil nutrients at the same cost as
chemical fertilizers - we continue to see favorable market
conditions that we believe will further accelerate our earnings
growth potential in 2006 and beyond."
London investment bank Charles Stanley and the China subsidiary
of Wall Street firm New York Global Group acted as advisors to
Bodisen related to the above mentioned financing. Global law firms
Jones Day and Sichenzia Ross Friedman Ference acted as legal
counsels to this transaction.
About Bodisen Biotech, Inc.
A Delaware company, Bodisen is headquartered in Shaanxi, China's
agricultural hub. The Bodisen brand is a highly recognized
fertilizer brand in China. Its environmentally friendly "green"
products support the mandate of the Chinese government to increase
crop yields for the purpose of decreasing China's dependency on food
imports. Utilizing proprietary agricultural technologies, Bodisen
sells over 60 packaged products, broken down into 4 product
categories: Organic Compound Fertilizer; Organic Liquid Fertilizer;
Pesticides & Insecticides, and agricultural raw materials.
Bodisen's organic fertilizers can be absorbed by plants within 48
hours and enrich soil conditions without the damaging effects
associated with chemical fertilizers. These products address grains,
vegetables, and fruit crops and have been proven to increase crop
yields by 10% to 35% while being 100% environmentally friendly.
Among China's population of 1.3 billion, approximately 900 million
are farmers whose incomes depend on their crop yields. With
approximately 600 (and growing) nationwide distribution centers,
Bodisen has experienced rapid growth in its existing business.
BODISEN HAS RESEARCH COVERAGE IN NEW YORK AND IN LONDON
Wall Street firm New York Global Securities, Inc. ("NYGS", http://www.newyorkglobal.com/)
provides research coverage for Bodisen. NYGS' parent company New
York Global Group ( http://www.nyggroup.com/) has a
significant China presence and is one of the largest US firms in
China in the financial services sector. London investment bank
Charles Stanley ( http://www.charles-stanley.co.uk/),
a member of the London Stock Exchange since 1852, provides research
coverage for Bodisen in London.
Safe Harbor Statement
This press release may contain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private