BVI-registered Origin Agritech completed the Second Notes Repurchase Agreement

Origin Agritech Limited, an agricultural biotechnology company operating in China and based in the British Virgin Islands, announced the completion of the Second Notes Repurchase Agreement with Citadel Equity Fund Ltd. According to the Second Notes Repurchase AgreementĀ  as of December 30, 2009, the BVI company repurchased the remaining part of the outstanding 1% Guaranteed Senior Secured Convertible Notes from Citadel due 2012, by full repayment in cash of the agreed upon purchase price due to Citadel.

Origin Agritech issued the Notes to Citadel in an aggregate principle amount of US$40 million in June 2008, and repurchased $23.4 million in principle of these notes in July 2008 and January 2009. This is the last tranche of the aggregate principle amount of the remaining US$16.6 million, for a repurchase price of US$104,000 for each principal amount of US$100,000 of such Notes. These repurchased notes have been cancelled.

The Note repurchase provides the BVI company with an opportunity to eliminate expensive debt on its balance sheet, receive favorable financial terms, and provide it with significant flexibility for future growth and capital opportunities.

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