Migao Corporation

Migao Corporation

November 18, 2009 18:26 ET

Migao Corporation Announces Increase to Previously Announced Bought Deal Financing

TORONTO, ONTARIO--(Marketwire - Nov. 18, 2009) -


Migao Corporation (TSX:MGO), a China-based leading specialty potash fertilizer producer, is pleased to announce that it has increased its previously announced bought deal financing with a syndicate of underwriters led by CIBC and Canaccord Capital Corporation.

The Company now intends to issue a total of 4,940,000 common shares at a price of $7.10 per common share ("Offering Price") for gross proceeds to Migao of approximately $35 million (the "Offering"). The Offering is expected to close on or about December 10, 2009 and is subject to regulatory approval.

The Company has granted the Underwriters an over-allotment option exercisable for a period of 30 days following the closing of the Offering, to purchase up to an additional 15% of the number of common shares issued pursuant to the Offering at the Offering Price. If the option is exercised in full, the total gross proceeds of the financing will be approximately $40.3 million. The common shares will be offered in all Provinces of Canada via a short-form prospectus.

The Company intends to use the net proceeds from the Offering to fund the development of specialty potash or related fertilizer manufacturing capacity in China and/or Southeast Asia, fund working capital and for general corporate purposes.

Closing of the Offering is subject to certain conditions, including but not limited to, receipt of all necessary securities regulatory approvals, including the approval of the TSX.

The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States absent an exemption from registration.

Migao Corporation, through its wholly owned subsidiaries, owns and operates fertilizer production plants in various strategic locations across China for the production and sale of specialty potash fertilizer (potassium nitrate and potassium sulphate) to China's agricultural market. Migao Corporation is subject to, and complies with strict government regulations that govern safety, quality and environmental protection. Migao's Sichuan facility is ISO 14001 certified, an international environmental management standard. Please visit www.migaocorp.com for further information.

This press release contains statements that may constitute forward-looking statements, which may include financial and other projections, as well as statements regarding future plans, objectives or economic performance. Forward-looking information involves significant risks, assumptions, uncertainties and other factors that may cause actual future results or anticipated events to differ materially from those expressed or implied and accordingly, investors should not place undue reliance on any such forward-looking statements. Factors that could cause results to vary include those expressed in the Company's filings with Canadian securities regulatory authorities. All information presented herein should be read in conjunction with such filings.

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