China Kangtai Cactus Biotech Inc. (CKGT) announced today that it has entered into an equity purchase agreement with Kodiak Capital Group, LLC to support its expansion and growth strategies.
The company intends to use $1 million in proceeds to help finance marketing projects for its cactus-based cigarettes and soft drinks. The company also plans to acquire additional equipment for its newly purchased cigarette manufacturing plant and its soft drinks operations to enhance current and future production capacity.
China Kangtai CEO Jinjiang Wang said, “This financing supports another major step forward in our expansion strategy. Demand for cactus-based products, particularly cigarettes, is growing rapidly every year. We are confident that the financing can help us greatly enhance our marketing efforts and business growth.”
Robert McCarthy, Managing Director of Kodiak Capital Group said, “We are pleased with the opportunity to invest in the exciting growth of China Kangtai Cactus. China has long history of using herbal-based products as medicine or regular dietary supplements. By leveraging our financial support, we believe that China Kangtai Cactus will further strengthen its enormous growth potential.”
About Kodiak Capital Group, LLC.
Kodiak Capital Group, LLC is engaged in assisting growth companies in all facets of their long term strategy by providing capital and progressive business solutions. Kodiak manages a portfolio of investments in public and private equities. Founded in 2009, Kodiak has transacted in excess of $400 million in financing for companies across a multitude of industries, including biotechnology, business services, consumer products, defense, healthcare, Internet, manufacturing, medical devices, natural resources, oil and gas, renewable energy and wireless communications. Headquartered in New York City; Kodiak has assisted companies throughout North America, China and Australia. More information may be found at http://www.kodiak-capital.com/
For more information regarding the deal: http://www.sec.gov/Archives/edgar/data/1017699/000114420410037603/v190358_8k.htm
I think it is great to get financing but there could be some pressure on the stock price, because the price will be based on the following formula: eighty three percent (83%) of the volume-weighted average price of the Company’s common stock five (5) days immediately preceding the date of the Put Notice and five (5) days immediately following the date of the Put Notice. I don't know if Kodiak Capital Group is allowed to bring the stock price down, but it could be that they want the shares as cheap as possible.