American Lorain Announces Closing of $12 Million Private Placement
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.
