China Kangtai Cactus Biotech Announces Acquisition of Tobacco Manufacturer

Source from:  Business Wire 07/07/2010

China Kangtai Cactus Biotech Inc. (OTCBB:CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that it has entered into a definitive assets purchase agreement to acquire the assets of Raoping County Dadi Tobacco Trade Center. (Hereinafter referred to as Dadi). Pursuant to a definitive equity transfer agreement signed on June 28, 2010, the RMB 35 million (approximately $5.1 million) acquisition includes a building, equipment, a warehouse and established brands in Guangdong province and Macao. Dadi is a tobacco product manufacturer and wholesaler of commodity, hardware and electric equipment. Dadi manufactures tobacco cigarettes in Guangdong province and Macao and sells them under its own brand name mainly throughout Southeast Asia including The Philippines, Taiwan and Myanmar; part of them are also sold to China. Mr. JianDe Lin, CEO of Dadi, said: "China Kangtai Cactus is a great company that has shown remarkable growth with its line of excellent cactus-based products. We are confident this transaction provides a solid foundation for China Kangtai Cactus to continue building a strong cigarette business." China Kangtai Cactus currently outsources cactus-based cigarette production to a manufacturer approved by China's State Administration for Industry & Commerce and China's State Tobacco Monopoly Bureau. China Kangtai CEO Jinjiang Wang said, "This acquisition enables us to produce cactus-based cigarettes in our own facilities, which will provide us with stronger cost control and production flexibility. By leveraging Dadi's brand name and sale channels in The Philippines, Taiwan and Myanmar, we can expand our cactus-based cigarette market sales to Southeast Asia, which we expect to help us significantly broaden future sales. We also expect this acquisition to be accretive to earnings and to significantly increase shareholder value in the long run." About China Kangtai Cactus Biotech, Inc. China Kangtai Cactus Biotech, Inc. is a leading grower, developer, producer, and marketer of cactus-derived products, including nutraceuticals, nutritious food, health and energy drinks, beer, wine and liquor, extracts and powders, and animal feed. China Kangtai controls over 387 acres of plants and maintains an active R&D group that holds 18 product patents and is seeking another 12. China Kangtai's high-quality "green" products are sold throughout China via a distribution network that covers 12 of China's 23 provinces and two of China's four municipalities. More information may be found at http://www.biocactus.com or via e-mail: chinakangtai@gmail.com. China Kangtai's online investor kit, including an investment profile, press releases, current price quotes, stock charts and more is available at http://www.hawkassociates.com/profile/ckgt.cfm. To subscribe to future releases via e-mail alert, visit http://www.hawkassociates.com/about/alert/. Enditem