Business
Origin Agritech Finalized Agreement to Sell Former Office Space, Converts RMB137.7 Million Debt into Joint Venture Equity
BEIJING, Sept. 6, 2023 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, today announced the
About this update from Origin Agritech Limited
[{"type":"text","content":"BEIJING, Sept. 6, 2023 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the \"Company\" or \"Origin\"), an agriculture technology company, today announced the successful completion of an agreement with Beijing Changping Technology Innodevelop Group (BC-TID). This strategic agreement converts approximately RMB 137.7 million in debt (about US$19 million) into equity in a joint venture. Importantly, this transaction neither involves any aspects of our seed business and technology nor results in the issuance of any new shares of Origin Agritech Ltd. (NASDAQ: SEED).\nKey Details of the Agreement:\nTransaction Objective: The primary focus of this agreement is the sale of Origin's former office space in Beijing to the joint venture.Asset Transfer: No biotechnology IP or research is included in this transaction. All intellectual property and research assets, including seed business, biotech traits, nutrition enhanced corn (NEC), and supply chain business-related technology and revenues, remain with Origin.Financial Impact: The RMB 137.7 million ($19 million) debt will be eliminated from Origin's financial statements.This transformative transaction fortifies Origin's financial health, better positioning the Company to achieve its long-term objectives in the rapidly evolving agricultural biotech sector.\nAbout Origin Agritech Limited\nOrigin Agritech Limited, founded in 1997 and headquartered in Zhong-Guan-Cun (ZGC) Life Science Park in Beijing, is a leading Chinese agricultural technology company. In crop seed biotechnologies, Origin Agritech's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. Over the years, Origin has established a robust biotechnology seed pipeline including products with glyphosate tolerance and pest resistance (Bt) traits. For further information, please visit the Company's website at www.originagritech.com. The company also maintains a twitter account for updating investors on company and industry developments, which is @origin_agritech.\nForward-Looking Statements\nThis communication contains \"forward-looking statements\" as defined in the federal securities laws, including Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Ref...