July 21, 2009 (FinancialWire) — China Green Agriculture, Inc. (AMEX: CGA) said it has priced an offering to sell 3.5 million shares of its common stock at $7.15 per share in a public offering. Roth Capital Partners acted as the sole underwriter.

The company said it expects that the offering will yield net proceeds of around $23.7 million and plans to use all of the funds to expand its existing research and development through the construction of new green-house facilities.

China Green said it estimates that these new facilities will require an aggregate investment of around $38.6 million over the course of two years. The company plans to use existing cash reserves, operating profits and bank loans to provide the difference between the total required investment of the new green-house facilities and the net proceeds from this offering.

Xi’an, China-based China Green Agriculture produces and distributes humic acid based liquid compound fertilizer. The company markets its fertilizer products to private wholesalers and retailers of agricultural farm products in 27 provinces in the PRC.

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