China Modern inks supply deal with SuihuaDongxing Dairy, worth $1.65m in revenue
China Modern Agriculture (OTCBB:CMCI) said Monday it has struck a deal to become the official supplier of fresh milk to SuihuaDongxing Dairy Products.
The Harbin, China-based milk and organic fertilizer producer, which breeds cows and calves, said it will sell a total of 4,700 tonnes of fresh milk to SuihuaDongxing at $0.3655 per kilogram. The deal will run through the end of the year, and is worth an estimated $1.65 million in gross revenues.
The purchase quantity and the price are subject to a 10% and 5% adjustment, respectively, based on market condition and product quality, China Modern added.
China Modern, whose gross revenues increased 64% in the first three quarters of fiscal 2011 to $17.2 million, said the deal will further expand its dairy market share in the Heilongjiang province, located in the northeastern region of the country.
The company's stock on the OTC Bulletin Board rose 13.79% to $1.65 per share as of 9:37 am EDT on Monday.
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