ADAMA Completes RMB 1.56 Billion / USD 240 Million Equity Offering

BEIJING and TEL AVIV, Israel, January 15, 2018 /PRNewswire/ --

Global crop protection group ADAMA, the combination of Adama Agricultural Solutions Ltd. and Hubei Sanonda Co., Ltd. (together, "ADAMA" or "the Combined Company"), today announced that it has successfully completed a private placement of new equity capital on the Shenzhen A-share market, raising gross proceeds of RMB 1.56 billion / USD 240 million. The funds, which were raised from six of China's leading institutional investors, are intended to be used for the financing of designated investments as part of ADAMA's growth and development plans.

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The investors who participated in the equity offering were Cinda Asset Management Co. Ltd., China Huarong Assets Management Co. Ltd. through CCB Principal Asset Management Co. Ltd., Penghua Fund Management Co. Ltd., Caitong Fund Management Co. Ltd., China Chengtong Holding Group's China Structural Reform Fund Co. Ltd. and Aegon Industrial Fund Management Co. Ltd. The new investors are subject to a one-year lock up period.

ADAMA intends to use the proceeds of the equity offering to finance designated investments, including the build-up of the recently commissioned state-of-the-art formulation plant in Huai'An, the installation and expansion of manufacturing facilities in Israel, Brazil and the US, as well as in the further development of its global product portfolio.

The offering was effected through the issuance of 104,697,982 new A-shares at a price of RMB 14.90 per share. Upon completion of the offering, the total registered capital increased to RMB 2,446,553,582, divided into 2,279,504,241 A-shares, and 167,049,341 B-shares, issued and outstanding, bringing the company's aggregate market capitalization to RMB 39.7 billion / USD 6.14 billion as at the close of trading on 12 January 2018. The new shares will be listed on the Shenzhen Stock Exchange as of 17 January 2018.

Aviram Lahav, ADAMA's Chief Financial Officer commented: "We are pleased to welcome such well-regarded institutional investors as partners and stakeholders. This capital raise demonstrates our ability to benefit from the significant equity capital market in China, one of the key aims of our combination and flotation. Following our recent inclusion in the Shenzhen-Hong Kong Stock Connect, ADAMA now represents a unique opportunity for both Chinese and global investors. The proceeds we raised will be put to good use in supporting our key global growth initiatives in the coming years."

Goldman Sachs Gao Hua Securities and Guotai Junan Securities served as joint underwriters for the offering.

About the Combined Company: 

The Combined Company, which will be named ADAMA, is comprised of Adama Agricultural Solutions Ltd. and Hubei Sanonda Ltd., and is one of the world's leading crop protection companies. We strive to Create Simplicity in Agriculture - offering farmers effective products and services that simplify their lives and help them grow. With one of the most comprehensive and diversified portfolios of differentiated, quality products, our 6,600-strong team reaches farmers in over 100 countries, providing them with solutions to control weeds, insects and disease, and improve their yields. For more information, visit us at http://www.adama.com and follow us on Twitter^® at @AdamaAgri.

Contact 
Wayne Rudolph
Head of Investor Relations
Email: [email protected]

Yanlai Xu
China Investor Relations
Email: [email protected]

SOURCE ADAMA Agricultural Solutions Ltd.