XI'AN, China, Nov. 10, 2010 /PRNewswire-Asia-FirstCall/ -- Huifeng Bio-Pharmaceutical Technology, Inc. (OTC Bulletin Board: HFGB) ("the Company"), specializing in developing and producing botanical extracts and other raw materials for pharmaceuticals and food additives, today announced it entered into a $3.9 million USD Financing and Construction agreement with Xi'an Jucheng Investment & Consulting Co., Ltd. ("Jucheng"), a company organized and operating under the laws of the People's Republic of China ("PRC").
Under the agreement, Jucheng shall provide $3.9 million in financing for the construction of a Diosmin plant with an annual production capacity of 500 tons. The plant will be designed to meet the COS Standard for Diosmin production. In consideration, the Company has agreed to issue to Jucheng 6,500,000 shares of the Company's restricted common stock, of which 1,500,000 shares shall remain restricted until Huifeng Bio-Technic approves and accepts the plant upon completion. The Company expects the construction of the plant to be completed within 8 months.
The addition of this plant will increase the Company's Diosmin production capacity to 600 tons. Diosmin production lines that meet the COS Standard will significantly improve the quality of the Company's Diosmin products, enable the Company to attract larger customers and solidify the Company's leading position in the Diosmin market with the ability to capture more than 50% share of China's exports.
"The financing will provide us capital to construct a new COS Standard Diosmin plant with 500 tons of production capacity, whichwill enable us to become the largest Diosmin producer in Asia. Demand for our Diosmin products continues to grow rapidly in the global market and this expansion will give us a significant competitive advantage," said Mr. Jing'an Wang, CEO.
"The completion of this new plant will mark another key milestone in the rapid growth of Huifeng. Our company has received many orders from European customers for Diosmin that complies with the COS Standard. We expect to see continued robust demand for our Diosmin products as a result of our competitive pricing and quality compared to our competitors and we believe this plant has the capacity to generate an additional $20 million in revenue each year for the Company"
About Huifeng Bio-Pharmaceutical Technology, Inc.
Huifeng Bio-Pharmaceutical Technology, Inc., located in Xi'an, People's Republic of China, develops and produces plant extracts and pharmaceutical raw materials for use in pharmaceutical, nutraceutical and food production. It is the leading Chinese producer of rutin and related plant-derived chemicals in a class called flavonoids, with medicinal and other beneficial properties. Founded in 2002, Huifeng uses proprietary patented processes to extract rutin more efficiently than traditional extraction techniques. The Company is diversifying its product lines through internal development, acquisition and cooperation with scientific research organizations. More information can be found on the Company's web site at: http://www.hfgb.cn/
This press release contains "forward-looking statements" within the meaning of the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to differ materially from the results expressed or implied by such statements, including delays in completing construction of the Diosmin plant due to unforeseen events, delays in obtaining COS certification, changes from anticipated levels of sales, future national or regional economic and competitive conditions, changes in relationships with customers, access to capital, difficulties in developing and marketing new products, marketing existing products, customer acceptance of existing and new products, and other factors disclosed in the Company's Annual Report on Form 10-K for the year ended Dec. 31, 2009 and the Company's subsequent Quarterly Reports on Form 10-Q, especially in the "Risk Factors" sections of these reports. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. The Company has no obligation to update the forward-looking information contained in this press release.
For more information, please contact:
Mr. Kevin Fickle
Huifeng Bio-Pharmaceutical Technology, Inc.
Ms. Bing He
SOURCE Huifeng Bio-Pharmaceutical Technology, Inc.