Origin Agritech re-enters northeast China market with new corn varieties

BEIJING - Origin Agritech Ltd. (NASDAQ:SEED), a small-cap agricultural biotechnology company with a market capitalization of $11.3 million and annual revenue of $12.9 million, has re-entered the Northeast China agricultural market with the completion of its Northeast Variety Showcase and Technology Seminar in Changchun on September 18-19, the company announced Wednesday. According to InvestingPro analysis, the company currently trades below its Fair Value, despite facing significant operational challenges.

The event, which attracted over 200 dealers and partners, featured the introduction of several newly approved corn varieties including Jinqiao 8, Jingke 4580, and Jingke 317. These varieties have been developed with traits such as high yield potential, disease resistance, and regional climate adaptability.

Origin also announced a collaboration agreement with Fengtian Seed Industry to jointly develop and commercialize premium varieties, including Ao Yu Feng Tian 310, 501, and 109. The partnership aims to leverage established regional distribution networks for market penetration.

During the event, the company provided updates on its transgenic technology platform, highlighting advancements in the BBL2-2 event. A representative from China Agricultural University presented gene editing applications developed in collaboration with Origin.

The company also launched its Golden Harvest Club and Brand Symbiosis Program, initiatives designed to strengthen dealer relationships and create collaborative growth opportunities with distribution partners.

"Our re-entry into the Northeast market is a pivotal part of our growth strategy," said Origin CEO Weibin Yan in the press release statement.

Origin Agritech, founded in 1997 and headquartered in Beijing, focuses on crop seed biotechnologies. The company's phytase corn was the first transgenic corn to receive the Bio-Safety Certificate from China's Ministry of Agriculture. InvestingPro subscribers have access to 14 additional key insights about Origin Agritech's financial health and growth prospects, including detailed analysis of its cash flow and profitability metrics.

In other recent news, Origin Agritech Ltd. has secured approximately $3.88 million in new investments through two agreements. CEO Weibin Yan personally invested $2.4 million to acquire 2 million ordinary shares at $1.20 per share. Additionally, the company modified an existing securities purchase agreement, consolidating remaining tranches into a single closing that will provide an extra $1.48 million. In a related development, Origin Agritech has also modified a previous securities sale agreement, selling 1,234,300 ordinary shares at $1.20 per share, resulting in an aggregate consideration of $1,481,250. The shares are issued as restricted stock under an exemption from the Securities Act of 1933. Furthermore, the company appointed two new independent directors, Dr. Changqing Mao and Mr. Siu Laam Hau, as part of a board restructuring that reduces its size from seven to five members. Meanwhile, Origin Agritech has commenced full-scale seed processing operations at its Xinjiang facility, featuring a fully automated production line for corn seeds. These developments reflect the company's ongoing efforts to enhance its financial and operational structure.

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