HARBIN, China--(BUSINESS WIRE)--China Kangtai Cactus Biotech Inc. (OTCBB: CKGT), a vertically integrated grower, developer, manufacturer and marketer of a variety of cactus-based products in China, announced today that the company expects to restate its previously filed annual report on Form 10-K for year 2008 to (1) correct errors relating to the accounting for deemed dividends from the sales of convertible preferred stock and warrants issued on March 21, 2008 and July 16, 2008 and (2) correct the non-accounting for the grant of 150,000 stock options to the company’s legal counsel on December 31, 2008 and also restate its quarterly reports on form 10-Q for the first three quarters of fiscal 2009. This reflects the adoption of non-cash related accounting treatment of warrants and convertible preferred stock the company issued in connection with the "Preferred Stock Purchase Agreement" dated March 21, 2008, based on Emerging Issues Task Force Issue No. 07-05, "Determining Whether an Instrument (or Embedded Feature) Is Indexed to an Entity's Own Stock" ("EITF 07-05").
