Origin Agritech Receives an Order for 20,000 Metric Tons of Nutritionally Enhanced Corn
Origin Agritech Ltd. (NASDAQ: SEED) announced a supply agreement with Yunnan Feeding Company for 20,000 metric tons of nutritionally enhanced corn (NEC), valued at RMB62 million ($9.2 million). This order adds to a previous agreement of 50,000 metric tons, bringing the total backlog to RMB217 million ($32 million). The company expressed satisfaction with the growing demand for NEC and is focused on ramping up production. This growth reflects the positive reception in the feedstock industry.
- New supply agreement for 20,000 metric tons of NEC valued at RMB62 million ($9.2 million).
- Total backlog of orders now amounts to RMB217 million ($32 million) following the new agreement.
- Growing demand for NEC indicates strong market interest.
- None.
BEIJING, May 23, 2022 /PRNewswire/ -- Origin Agritech Ltd. (NASDAQ: SEED) (the "Company" or "Origin"), an agriculture technology company, announced today that the company and Yunnan Feeding Company have entered into a supply agreement, under which Yunnan will purchase 20,000 metric tons of Origin's nutritionally enhanced corn (NEC).
Pricing will be based on the prevailing price of corn at the time of delivery but based on current market prices the deal would be valued at RMB3100 per metric ton, or RMB62 million in total (
Origin had previously announced 50,000 metric ton supply agreement back in April of this year. The approximate combined value of the two orders is RMB217mm (
"It is quite gratifying to see the feedstock industry's excitement and demand for our new corn variety, NEC," said Dr. Gengchen Han, Origin Agritech's Chairman. "We are focused on operations and ramping up production to catch up with the quickly increasing demand."
About Origin Agritech Limited
Origin 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.
Forward-Looking Statements
This 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 Reform Act of 1995. Forward-looking statements address expected future business and financial performance and financial condition, and contain words like "expect," "anticipate," "intend," "plan," "believe," "seek," "will," "would," "target," and similar expressions and variations. Forward-looking statements address matters that are uncertain. Forward-looking statements are not guarantees of future performance and are based on assumptions and expectations which may not be realized. They are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates but involve a number of risks and uncertainties, many of which are beyond the company's control. Some of the important factors that could cause the company's actual results to differ materially from those discussed in forward-looking statements are: failure to develop and market new products and optimally manage product life cycles; ability to respond to market acceptance, rules, regulations and policies affecting our products; failure to appropriately manage process safety and product stewardship issues; changes in laws and regulations or political conditions; global economic and capital markets conditions, such as inflation, interest and currency exchange rates; business or supply disruptions; natural disasters and weather events and patterns; ability to protect and enforce the company's intellectual property rights; and separation of underperforming or non-strategic assets or businesses. The company undertakes no duty or obligation to publicly revise or update any forward-looking statements as a result of future developments, or new information or otherwise, should circumstances change, except as otherwise required by securities and other applicable laws. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.
For further information:
Kirin Smith
President, PCG Advisory
646-823-8656
Joe Ramelli
Director of Investor Relation
Phone: 310-845-6238
Email: joe@originagritech.com
View original content:https://www.prnewswire.com/news-releases/origin-agritech-receives-an-order-for-20-000-metric-tons-of-nutritionally-enhanced-corn-301552653.html
SOURCE Origin Agritech Limited
FAQ
What is Origin Agritech's recent supply agreement about?
How much is the value of the new supply agreement by Origin Agritech?
What is the total order backlog for Origin Agritech as of the recent announcement?
Who is the partner in Origin Agritech's new supply agreement?
When was the announcement made regarding the new supply agreement?
