Nutrastar International, a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris, health beverages, and organic and specialty foods, announced that its CEO, Ms. Lianyun Han, has completed two strategic private share purchase transactions for a total of 1.9 million shares, reducing her ownership and voting power in the company from approximately 46.9% to approximately 36% on a fully diluted basis.
The first transaction of 300,000 restricted shares at a previously negotiated purchase price of $1.40 per share was completed with its long-term and value-added shareholder, Accretive Capital Partners (Accretive Capital), a private investment fund founded and managed by Richard Fearon, an active member of Nutrastar's Board of Directors.
Founded in 2000, Accretive Capital targets undervalued small and micro-cap public companies that represent attractive take-private candidates. The fund has been nationally ranked by Morningstar, Barron's Magazine, Bloomberg, Lipper, and Barclay Managed Funds, was recipient of HFM Week Magazine's 2011 Best Single Manager Long-Term Performance award among all U.S. hedge funds under $250 million, and was named finalist for PAM Magazine's 2014 Best Wealth Manager Long-Term Performance award.
Post transaction, Accretive Capital's ownership increased from 10.4% to approximately 12.0% on a fully-diluted basis. The fund has grown its position in Nutrastar since first investing in January 2011 and has been a value-added partner for over three years. Richard Fearon, Founder and Managing Partner of Accretive Capital and member of Nutrastar's Board of Directors, commented, "We are pleased to increase our investment at this pivotal point in Nutrastar's evolution into a global nutraceutical supplier. Our team is focused on helping Nutrastar penetrate new markets internationally while sustaining its impressive expansion domestically, and we are committed to offering continued strategic and financial guidance."
The second transaction of 1.6 million restricted shares at a negotiated purchase price of $2.00 per share was completed with Beijing MLTH Fortune Investment Management Co., Ltd. (MLTH) for 1 million shares and with two affiliated investors for 600,000 shares. MLTH is a specialized fund management company with approximately RMB1.1 billion under management.
The fund and its managing partner have developed key strategic relationships and partnerships with many pharmaceutical and nutraceutical companies in China, including Harbin Pharmaceutical Group, Dalian Hui-Li Biological Health Products Co., Ltd., and Heilongjiang Beiqishen High-tech Health Products Co., Ltd. MLTH offers professionally managed investment portfolios for investors throughout China, designed to meet the varying needs, risk profiles and time frames of each investor.
