Origin Agritech sells Xinjiang seed subsidiary stake

• Origin Agritech (NASDAQ:SEED) agreed to sell a 70.5184% stake in Xinjiang Originbo for RMB 108 million.
• The transaction includes RMB 96.61 million in cash payments and RMB 11.39 million offset against existing debt.
• Origin plans to use proceeds to support working capital, research and development, new corn varieties and market expansion.

Origin Agritech (NASDAQ:SEED) entered into an agreement to sell its principal corn seed production subsidiary stake as part of a transaction involving Xinjiang Originbo.

Under the agreement, Beijing Origin will transfer its 70.5184% interest in Xinjiang Originbo to Hunan Xindaxin for RMB 108 million.

The consideration includes RMB 11.39 million offset against existing debt, with RMB 96.61 million (approximately US$13.4 million) payable in cash by June 30, 2027.

Legal title to the stake will remain with Beijing Origin until the buyer completes full payment, while Origin will continue operating through a five-year lease-back arrangement running from October 1, 2026, to September 30, 2031.

The lease-back agreement requires annual payments of RMB 4 million, with production and sales revenue remaining with Beijing Origin.

Existing operating staff will remain unchanged except for finance and risk-control positions.

Origin stated that proceeds from the transaction will support working capital requirements, research and development programs, development of new corn varieties and market expansion initiatives.

The company disclosed that CEO Weibin Yan owns approximately 9.75% of Hunan Xindaxin. The independent Audit Committee approved the related-party agreements, and Yan recused himself from Board discussions and voting.