XI'AN, CHINA, March 20, 2024 (GLOBE NEWSWIRE) -- China Green Agriculture, Inc. (NYSE: CGA) (“China Green Agriculture” or the “Company”), a company that primarily produces and distributes humic acid - fertilizer-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its subsidiaries in China, today provides a business update on the recent pending acquisition of Lonestar Dream Inc., a Delaware corporation (the "Lonestar Dream" ), which focuses on the cryptocurrency sector. , particularly bitcoin mining. Mr. Zhibiao Pan is co-CEO of the company and is the sole shareholder of Lonestar Dream. The Company came up with a dual business development strategy in 2021, aimed at expanding into the cryptocurrency industry. The Company subsequently diligently executed the strategy, culminating in this important acquisition.
CGA previously announced on December 27, 2023 that it had entered into a stock purchase agreement to acquire Lonestar Dream for a total purchase price of $49 million. Financing for this acquisition will be disbursed in three installments, subject to customary closing conditions. The shares of Lonestar Dream, owned by Zhibiao Pan, have been transferred and registered in the name of CGA. For more details on the transaction, see the Company's Form 8-K filed with the Securities and Exchange Commission (“SEC”).
Founded in September 2021, Lonestar Dream has steadily increased its presence in the cryptocurrency space. After entering into a power lock-in agreement in September 2021, securing an impressive 600 megawatts (“MW”) across two sites, Lonestar Dream has already energized the first phase, totaling 100 MW, in August 2022. With plans to deliver an additional 500 MW by 2026, Lonestar Dream has diversified its operations to include self-mining initiatives and customer hosting services, leveraging cutting-edge mining technologies such as air cooling, hydraulic cooling and its patented immersion cooling system. In particular, Lonestar Dream's immersion cooling system, developed in-house and patent pending in the United States, exemplifies its commitment to efficiency and innovation within the cryptocurrency mining sector.
Beyond its cryptocurrency ventures, Lonestar Dream has set its sights on future industrial expansion, recognizing the critical role of energy in driving emerging technologies such as artificial intelligence. With plans to deploy more energy infrastructure, including establishing its first energy industrial park by the end of 2024, Lonestar Dream is set to lay the foundation for the growth of cryptocurrencies and artificial intelligence. Lonestar Dream's proactive approach is evident in conducting over 30 site visits and extensive preliminary investigation in Texas. By strategically positioning itself in key regions and actively engaging in research and development, Lonestar Dream demonstrates its commitment to innovation and willingness to lead the charge in shaping the future of energy and technology.
By developing the Energy Industrial Park, Lonestar Dream is a pioneer in the deployment of the energy ancillary services market, encompassing energy retail, dispatch and coverage. By seamlessly integrating the ancillary energy services market with cryptocurrency mining operations, efficiency and synergy between the two sectors is ensured.
Recognizing the importance of the renewable energy sector, Lonestar Dream has strategically included it in its expansion plans. It has already embarked on initial battery energy storage (BESS) and solar energy projects, laying the foundation for future developments in this promising field.
Overall, Lonestar Dream's ambitious vision for industrial expansion, its strategic initiatives in energy infrastructure, the integration of renewable energy and its commitment to innovation position it as a pioneering force in the convergence of energy and technology.
Zhibiao Pan, Co-CEO of CGA, expressed his excitement over the strategic leap, stating: "The acquisition of Lonestar Dream represents a strategic milestone for China Green Agriculture, Inc. as we embark on our journey into the booming energy and cryptocurrencies". Leveraging Lonestar Dream's expertise and infrastructure, we are poised to capitalize on the opportunities presented by the evolving digital landscape. With a strong commitment to innovation and sustainability, we aim to generate long-term value for our stakeholders while contributing to the advancement of the cryptocurrency and energy industries."
Mr. Zhuoyu Li, President and CEO of CGA, emphasized the strategic importance of the acquisition and highlighted Lonestar Dream's experienced management team, its extensive product portfolio and its large customer base as key assets driving the expansion of CGA in the cryptocurrency industry. He said: "The acquisition of Lonestar Dream represents an important step forward in CGA's business expansion. We are working diligently to complete it and will provide timely updates to our shareholders and the general public on the progress of this strategic initiative. I eagerly anticipate the opportunities of growth that this new and exciting chapter brings for our Company.
About China Green Agriculture, Inc.
The Company produces and distributes humic acid-based compound fertilizers, other varieties of compound fertilizers and agricultural products through its wholly owned subsidiaries, namely: Shaanxi TechTeam Jinong Humic Acid Product Co., Ltd. (“Jinong”), Beijing Gufeng Chemical Products Co. ., Ltd (“Gufeng”) and variable interest entities. In 2023, the Company began purchasing digital asset mining machines and established Antaeus Tech Inc. (“Antaeus”) in the state of Delaware and mined digital asset bitcoins in the state of Texas. For more information visit http://www.cgagri.com. The Company periodically posts important information on its website.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the Company's business, products and financial results. The Company's actual results may differ materially from those anticipated in the forward-looking statements depending on a number of risk factors including, but not limited to, the following: general economic, business and environmental conditions; development, shipment, market acceptance, additional competition from new and existing competitors; fluctuations in interest rates and currency exchange rates; the impact of the recent global outbreak of the novel coronavirus disease (COVID-19); technological advances, new products achieved by competitors; challenges inherent to new product development; the company's ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of economies and sovereign risk; dependence on the effectiveness of the company's protections for innovative products; exposure to litigation and/or regulatory actions, and various other factors beyond the Company's control. All forward-looking statements are expressly qualified in their entirety by this Safe Harbor Statement and the risk factors detailed in the Company's reports filed with the SEC. China Green Agriculture undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances after the date of this release, except as required by applicable laws or regulations.
For more information, contact:
China green agriculture, inc.
Telephone: +86-29-88266383
Email: info@cgagri.com
SOURCE China Green Agriculture, Inc.
