Star Lake Plans Share Sale to Fund New Food Flavor Enhancer Project
Year:2009 ISSUE:33
COLUMN:NEW SETUP, AGREEMENT & PLAN
Click:369    DateTime:Nov.25,2009
Star Lake Plans Share Sale to Fund New Food Flavor Enhancer Project     

Star Lake Bioscience Co., INC. Zhaoqing, Guangdong (SH: 600866) plans to sell up to 50 million new shares at no less than RMB9.6 apiece to raise up to RMB484.59 million. The proceeds will be used to fund the technology upgrade project that will add 4 000 t/a disodium 5'-ribonucleotide capacity. Star Lake's major shareholder Guangdong Foreign Trade Group Co., Ltd. will buy at least 20% in the share placement.
   Disodium 5'-ribonucleotide is a new-aged food flavor enhancer. Domestic demand is expected to reach 11 000 tons for 2009, and grow at least 20% a year, Star Lake has estimated.
   Star Lake competes with the South Korea's CJ in supplying the Chinese market for such new-aged food flavor enhancer.
   Based in Zhaoqing, Guangdong province, Star Lake is a major biological fermentation and bio-chemical-based manufacturer.