Origin Agritech completes Chardan merger and State Harvest acquisition
On November 8, 2005, Chardan China Acquisition Corp. merged into Origin Agritech Limited, which then acquired State Harvest Holding Limited and its four operating companies. Shareholders gain a larger, operating hybrid seed business, and the filing says the shares will trade on the NASDAQ National Market under SEED, with about 15.1 million shares outstanding per the press release.
- Closing on November 8, 2005: Chardan merged into Agritech, then Agritech acquired State Harvest.
- State Harvest holders received $10 million in cash from Chardan's trust account and 10,000,000 Agritech shares; $250,000 is held back for one year.
- Up to $15 million in additional cash may be paid if financing of at least $40 million or cash-flow targets are met, and up to 1,500,000 more shares depend on after-tax profit of $11 million for the year ending June 30, 2006.
- Chardan officer positions were eliminated and five new directors were appointed, including Gengchen Han.