Carlyle co-founder David Rubenstein. One of the largest private-equity firms in the world, if not the largest, took 20% of a company called China Agritech ( CAGC) back in October 2009, when it participated in a private-placement deal with the organic fertilizer producer. About a month earlier, Agritech's shares had been "uplisted" to the Nasdaq from the over-the-counter markets, having reverse-merged into a shell in 2005. As is the case with many such deals, there were "make-good" provisions in the private-placement contract with Carlyle. If Agritech didn't hit certain earnings targets, it would owe Carlyle more shares. Agritech hit those earnings targets. The investment was a flyspeck relative to Carlyle's many, many billions worth of portfolio companies, but the fund's presence as anchor investor seemed to suggest that heavy-duty, private-equity-style due diligence had at least taken place. Another institutional investor, Glickenhaus & Co. ended up taking a 1.6% stake in China Agritech based in part on the Carlyle imprimatur. After gaining the Nasdaq listing, the company's stock ramped to highs of more than $30 before beginning a long collapse as short sellers attacked and auditors decided they didn't like what they saw. Neither did Nasdaq, which expelled the equity to the over-the-counter markets this year after yet another public battle between bears and bulls played out in the media and in the blogosphere. The company has yet to file a 10-K annual report for the year 2010. Carlyle hasn't sold any of its Agritech stock, according to a person familiar with the matter A spokesperson at the firm's Washington headquarters declined to comment.
Shares of China-biotics (Nasdaq:CHBT) were gapping down Thursday morning with an open price 11.6% lower than Wednesday's closing price. The stock closed at $2.85 yesterday and opened today's trading at $2.52.
Shares of China-biotics (Nasdaq:CHBT) have taken a tremendous swing upward. The stock is trading at $3.20 as of 3:50 p.m. ET, 21.2% above Friday's closing price of $2.64. Volume is at 140,599, 0.2 times the daily average of 776,600.
Shares of China-biotics (Nasdaq:CHBT) have taken a tremendous swing upward. The stock is trading at $2.55 as of 12:09 p.m. ET, 21.7% above Tuesday's closing price of $2.10. Volume is at 145,817, 0.2 times the daily average of 776,600.
Shares of China-biotics (Nasdaq:CHBT) have taken a tremendous swing upward. The stock is trading at $2.08 as of 2:25 p.m. ET, 22.4% above Wednesday's closing price of $1.70. Volume is at 550,020, 0.7 times the daily average of 776,600.