American Lorain Announces Closing of $12 Million Private Placement
04 November 2009 - 12:47AM
PR Newswire (US)
Proceeds Will Fund Nationwide Commercial Campaign to Promote Lorain
Convenience Foods and Chestnut Products in China JUNAN COUNTY,
China, Nov. 3 /PRNewswire-Asia-FirstCall/ -- American Lorain
Corporation (NYSE Amex: ALN), an international processed foods
company based in Shandong Province, People's Republic of China,
announced today that it has consummated a previously disclosed
private placement transaction in which it successfully raised
approximately $12 million in gross proceeds through the sale of its
common stock and warrants to several accredited investors.
Additional information regarding the private placement transaction,
including the number of shares of common stock and warrants sold,
and the terms thereof, as well as the registration rights granted
by the Company to the investors, can be found in the Company's
Current Report on Form 8-K filed on October 29, 2009 with the
Securities and Exchange Commission. American Lorain intends to use
the proceeds to support a planned, nationwide commercial campaign
to promote its convenience food products in the Chinese market and
to increase brand awareness for its Ready-to-Cook foods,
Ready-to-Eat foods, and Meals Ready-to-Eat, as well as the
company's chestnut products. "Our focus for the remainder of 2009
will be to launch our nationwide marketing campaign to promote the
Lorain brand for our chestnut and convenience foods products," said
Mr. Si Chen, Chairman and Chief Executive Officer of American
Lorain. "We expect our convenience food segment, which currently
comprises about 20 percent of our total revenue, to be a key driver
of our growth in the next two years. The $12 million we recently
raised will allow us to implement packaging improvements and
product enhancements and will fund our marketing efforts, which
include the commercial campaigns. We are also working to expand our
marketing efforts in Asia, North America, Europe and the Middle
East. We expect to see sales resulting from our initial marketing
efforts begin to add to our top line during the first half of
2010." Rodman & Renshaw, LLC, a subsidiary of Rodman &
Renshaw Capital Group, Inc. (NASDAQ:RODM), acted as the lead
placement agent for the private placement transaction and FT
Global, Inc. acted as the co-lead placement agent. About American
Lorain Corporation American Lorain Corporation is a Delaware
corporation that develops, manufactures and sells various food
products. The Company's products include chestnut products;
convenience foods products (including ready-to-cook foods,
ready-to-eat foods, and meals-ready-to-eat); and frozen, canned and
bulk foods products. The company currently sells over 234 products
to 26 provinces and administrative regions in China as well as to
42 foreign countries. The Company operates through its four direct
and indirect subsidiaries and one leased factory located in China.
For more information about American Lorain, please visit our
website at http://www.americanlorain.com/ . Safe Harbor Disclosure
Notice The information contained in this press release and the
attachments is as of October 28, 2009. The Company assumes no
obligation to update any forward-looking statements contained in
this earnings release or the attachments as a result of new
information or future events or developments. This press release
may contain forward-looking information about the Company. You can
identify these statements by the fact that they use words such as
"will," "anticipate," "estimate," "expect," "project," "intend,"
"plan," "believe," "target," "forecast" and other words and terms
of similar meaning in connection with any discussion of future
operating or financial performance or business plans and prospects.
Readers are cautioned not to place undue reliance on
forward-looking statements because actual results may differ
materially from those expressed in, or implied by, the statements.
Any forward-looking statement that the Company makes speaks only as
of the date of such statement, and the Company undertakes no
obligation to update any forward-looking statements, whether as a
result of new information, future events or otherwise. Comparisons
of results for current and any prior periods are not intended to
express any future trends or indications of future performance,
unless expressed as such, and should only be viewed as historical
data. For more information, please contact: At the Company: Alan
Jin, CFO American Lorain Corporation Tel: +86-539-731-7959 Email:
Web: http://www.americanlorain.com/ Investor Relations: Jon
Cunningham RedChip Companies Tel: +1-800-733-2447 x107 Email: Web:
http://www.redchip.com/ DATASOURCE: American Lorain Corporation
CONTACT: At the Company, Alan Jin, CFO of American Lorain
Corporation, +86-539-731-7959, or ; or Investor Relations, Jon
Cunningham of RedChip Companies, +1-800-733-2447 x107, or , for ALN
Web Site: http://www.americanlorain.com/
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