Nutrastar International Inc., a leading producer and supplier of premium branded consumer products made from commercially cultivated cordyceps militaris, including medicinal products, functional health beverages, and organic and specialty foods, announced that its long-term shareholder and value-added investor, Accretive Capital Partners, has increased its ownership stake by approximately 96 percent through several private transactions with management and a third party shareholder.
Established in 2000, Accretive Capital Partners is a private investment fund founded and operated by Richard Fearon, an active member of the Board of Directors of Nutrastar. Accretive Capital seeks to partner with exceptional managers of undervalued small and micro-cap public companies which represent attractive take-private candidates. A renowned value investor, Accretive Capital has received top fund rankings by Morningstar, Barron's Magazine, Bloomberg, Lipper, Barclay Managed Funds, and Infovest21, among others, and was recipient of HFM Week magazine's prestigious Best Single Manager Long-Term Performance Award in 2011 among all United States hedge funds under $250 million.
On December 23, 2013, Accretive Capital purchased 800,000 common shares and 2,750 preferred shares (convertible into common stock at the ratio of 1:10) of the Company for a total of 827,500 common share equivalents in private transactions. Post transaction, Accretive Capital increased its ownership from 5.3 percent to approximately 10.4 percent and has been building its position in Nutrastar since it first invested in January 2011.
The transactions included the acquisition of 700,000 common shares from Nutrastar's chief executive officer and founder, Ms. Lianyun Han, thus decreasing her voting power from approximately 52.7 percent to 47.2 percent, on a fully diluted basis. Ms. Han commented, "In response to market perceptions about public companies controlled by one individual, I agreed to reduce my stake by providing Accretive the additional ownership it was seeking. It was my pleasure to offer this sale to Accretive, as they are loyal, value-added, and long-term partners who share our values of being honest custodians of investor capital and our vision of benefitting society broadly."
She continued, "With these transactions, Nutrastar is no longer controlled by one individual, which we hope will give shareholders comfort and peace of mind that the Company is taking appropriate measures with well-suited and highly-regarded partners in the United States to ensure its growth and continued success both in China and abroad."
Richard Fearon, founder and managing partner of Accretive Capital Partners and member of Nutrastar's Board of Directors, commented, "We are thrilled to solidify our strong partnership with Ms. Han and the Nutrastar team and we look forward to offering strategic guidance as Nutrastar takes steps to expand internationally."