GUANGDONG, China, June 6, 2011 (GLOBE NEWSWIRE) -- China Growth Corporation (the "Company"), a leading producer and distributor of water purifying agent and High-performance Aluminate Calcium powder (HAC powder) in the southern, south-western, mid-eastern, and eastern part of China, today announced that it received a disbursement of $750,000 from the proceeds of its December offering that were previously held in escrow pending the Company's hiring of a chief financial officer.
Although the Company has not yet hired a CFO, the Company has been actively seeking to hire a CFO and has taken steps toward improving its financial reporting and internal control functions by engaging advisors familiar with generally acceptable accounting practices in the United States. In recognition of those steps and as a show of good faith, the lead investor and the Company agreed to release $750,000 of the total $1.5 million funds held in escrow. The remainder of the escrowed funds is expected to be disbursed once the Company hires a qualified chief financial officer.
The $750,000 disbursement to the Company required amendments to the subscription agreement entered into with the investors in the Company's December offering and the escrow agreement pursuant to which the escrowed funds are held. For further information about these amendments, please see the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on May 27, 2011.
About China Growth Corporation
China Growth Corporation manufactures and distributes water purifying agent and HAC powder, through its operating companies in China. It offers a variety of water purifying products, including dyeing purifying agent, purifying for paper making waste water, purifying agent of phosphorus removal, and discoloring agent, to businesses such as printing and dyeing, paper making, municipal wastewater, phosphorus removal, and oil removal from washing water. Water purifying products are produced at the company's self-owned production facilities in Jiangmen, Guangdong Province, and four other entrusted production lines in Zhaoqing, Guangdong Province, Yibin, Sichuan Province, Nanchang, Jiangxi Province and Hangzhou, Zhejiang Province. The company adopts "regional production and sales" model where each production facilities produces and supplies products to meet the market demand within its covered areas. The company also makes HAC powder, the core components of water purifying agents, and distributes through approximately six distribution centers to 13 provinces in China.
Forward-Looking Statements
This press release contains "forward-looking statements" made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 that are based on current expectations, estimates, forecasts and assumptions and are subject to risks and uncertainties. Words such as "will" "anticipate," "assume," "believe," "estimate," "expect," "goal," "intend," "plan," "project," "seek," "target," and variations of such words and similar expressions are intended to identify such forward-looking statements. All forward-looking statements speak only as of the date on which they are made. The Company undertakes no obligation to update any forward-looking statement or statements to reflect events or circumstances after the date on which such statement was made. Such forward-looking statements are subject to certain risks, uncertainties and assumptions relating to certain factors, including, without limitation, the following: the growth of the water purifying products industry in China; continuing demand for and market acceptance of our products; reliance on the Company's officers and key employees and the Company's ability to attract and hire key personnel, including a chief financial officer; ability to stay abreast of market trends and technological advances; our ability to effectively protect our proprietary rights of our technologies and not infringe on the intellectual property rights of others; our expectations regarding keeping and strengthening our relationships with major customers; our competitiveness in the industry in China and internationally; relevant government policies and regulations concerning our businesses; general economic and business conditions in China. These risks and uncertainties, as well as other risks of which the company is not aware or which the Company does not currently believe to be material, may cause actual future results to be materially different than those expressed by these forward-looking statements. In evaluating the statements, you should specifically consider various factors that may cause actual results to differ materially from those expressed in these forward looking statements. Readers should carefully review the risk factors under "Risk Factors" in the company's Form 10-Ks, Form 10-Qs and other Securities and Exchange Commission filings.
CONTACT: China Growth Corporation Mingzhuo Tan President and Chief Executive Officer tanmingzhuo@163.com