Chinese food manufacturer American Lorain Corporation has closed a US$12m private placement through the sale of common stock.
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American Lorain intends to use the proceeds to support a planned, nationwide commercial campaign to promote its convenience food products in the Chinese market, the company said today (4 November). The group will also invest in building brand awareness for its ready-to-cook foods, ready-to-eat foods, and meals ready-to-eat, as well as the company’s chestnut products.
“Our focus for the remainder of 2009 will be to launch our nationwide marketing campaign to promote the Lorain brand for our chestnut and convenience foods products,” said Si Chen, chairman and CEO. “We expect our convenience food segment, which currently comprises about 20% of our total revenue, to be a key driver of our growth in the next two years.”
He added: “The $12m we recently raised will allow us to implement packaging improvements and product enhancements and will fund our marketing efforts, which include the commercial campaigns. We are also working to expand our marketing efforts in Asia, North America, Europe and the Middle East. We expect to see sales resulting from our initial marketing efforts begin to add to our top line during the first half of 2010.”
Rodman & Renshaw and FT Global acted as placement agents for the private placement transaction.
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