NEW YORK, Sept. 16, 2011 /PRNewswire/ -- Deer Consumer
Products, Inc. (Nasdaq: DEER) (website: http://www.deerinc.com/), a
leading provider of "DEER" branded household consumer products to
Chinese consumers and a vertically integrated manufacturer of small
household and kitchen appliances for global customers, today
announced that Deer is scheduled to pay on October 14, 2011, its regular quarterly cash
dividend of $0.05 per share to
shareholders of record as of September 30,
2011.
In 2011, Deer has consistently made quarterly cash dividend
payments of $0.05 per share to its
shareholders. Deer anticipates reporting strong 3rd quarter product
sales as it continues to conduct its normal course of business.
EXTORTION ATTEMPTS AND FALSE ALLEGATIONS BY ILLEGAL STOCK SHORT
SELLERS
Deer is fully aware of the latest desperate illegal short seller
attacks on its stock, including repeated publication of the same
misstatements by fictitious figure "Alfred
Little" and so-called bloggers called "GeoInvesting". Deer
management emphatically and categorically denies the allegations
and imputations in these stories which are based on fabricated
information credited to sources with false identities and include
inaccurate statements regarding China land use rights and Deer's business. The
authors of these publications, "Alfred
Little" and "GeoInvesting," have failed to reveal their true
identities and conflicts of interest to avoid responsibility for
their spreading of false statements, continued defamation of Deer
and engaging in market manipulation.
In connection with these publications, the entities behind them
have approached Deer with questionable offers to cease their
"attacks". For example, "Alfred
Little" offered to issue retractions of various articles in
exchange for Deer dropping its ongoing subpoena and discovery
efforts in the Superior Court of the State of New York and "GeoInvesting" offered
to provide paid "consulting services" to Deer several months ago.
Deer refuses to compromise its vigorous efforts against these
entities that the Company believes are operating for the benefit of
short sellers.
HARBIN ELECTRIC, A PUBLIC COMPANY GOING PRIVATE AT $24 PER SHARE
Deer also notes that short sellers have attempted to link Deer
to a highly profitable, heavily shorted and unrelated company,
Harbin Electric, Inc., which is in the process of completing a
going private transaction at $24 per
share in cash, advised by Goldman Sachs, Morgan Stanley and Lazard
Freres & Co., as well as law firms including Skadden, Arps,
Slate, Meagher & Flom LLP, Davis
Polk & Wardwell, Gibson, Dunn & Crutcher LLP and
Loeb & Loeb LLP. Harbin has
been on the NASDAQ's Reg. SHO list for the last 70 days, indicating
naked short sellers have failed to deliver shares on settlement
dates in blatant violation of U.S. securities laws.
Like the common stock of Harbin Electric, Deer believes its
stock has also been manipulated in collusion among "naked" short
sellers. Deer believes that these illegal short sellers include
California and offshore-based
hedge funds and individuals that distribute false and fabricated
information concerning Deer via various websites and blogs. Deer
will continue to vigorously pursue all legal actions to protect its
shareholders' value.
SHORT SELLER RECOMMENDATIONS ARE NOT REGISTERED WITH THE SEC
The Company notes that the short seller publications by
"Alfred Little", "GeoInvesting" and
others, involve the direct recommendation of securities traded in
the United States. Neither
"Alfred Little" nor "GeoInvesting"
is an entity registered or approved by the SEC, FINRA or any other
regulatory authority. They are unknown individuals without any
regulatory validation of their qualifications while providing
recommendations without any means to check their records or
identify any conflicts of interest. Deer strenuously objects
to dealing with "ghosts," whose true identities are unknown and who
refuse to identify themselves in what Deer believes are attempts to
avoid liability for spreading false statements, defaming the
company and engaging in market manipulation.
DEER ENCOURAGES SHORT SELLERS TO REVEAL TRUE IDENTITIES AND
APPEAR IN COURT
Deer encourages "Alfred Little"
and "GeoInvesting" to disclose what Deer believes are illegal
payments received from short seller hedge funds in exchange for the
publication of the false short seller reports and for these
entities to appear in court to defend their actions as defendants
in Deer's litigation against them.
Deer has repeatedly filed relevant land acquisition related
documents with the SEC, and stands by the accuracy of its public
filings. Deer has also made repeated public filings stating that
its construction progress in Wuhu is proceeding well in accordance
with the Company's China domestic
expansion strategies.
DEER'S ACQUISITION OF LAND USE RIGHTS COMPLY WITH ALL RELEVANT
REGULATIONS AND DISCLOSURE REQUIREMENTS
There is no private ownership of land in China and the right to use land is highly
regulated by the PRC government. Prices for the rights to use land
are quoted for either "quota-approved land" or land that has not
been pre-approved for sale. The amount of quota-approved land,
which is land that has been registered for sale, is limited on a
national basis and its sale must be approved and publicly recorded
with China's Ministry of Land and
Resources. Records of use rights sold for quota-approved land
specify the size and price paid for the land and are the only
accurate measure of price for land use rights available for sale in
China. The relevant PRC government
agencies will only issue official land use rights certificates for
quota-approved land. In the Wuhu area of China where Deer has acquired land use rights,
the quota-approved land available for sale has for months been
completely exhausted.
In China, local municipal
employees are charged with promoting local land development and
attracting new businesses into the area. Unless land is
quota-approved and registered with China's Ministry of Land and Resources, any
statement regarding the pricing of land in the area is not reliable
and accurate. Land that is not quota-approved is routinely
underpriced to attract potential business. These facts about land
use rights are well known in China, but Deer believes that the short seller
allegations have exploited the general lack of knowledge in the
U.S. about China's land system and
mischaracterized these basic facts to help the publisher's hedge
fund clients to benefit from short positions in Deer and to
subsequently cover them at the expense of Deer's public
shareholders.
Deer has followed all requirements under PRC land regulations to
obtain approval and the land use rights certificates to its land in
the Wuhu area. Deer has filed documents related to its acquisition
of land use rights and made such disclosure in various filings
filed with the SEC, including the accurate costs for the land use
rights.
ABOUT DEER CONSUMER PRODUCTS, INC.
Deer Consumer Products, Inc. is a NASDAQ Global Select Market
listed U.S. company with its primary operations in China. Deer has a 16-year operating business
as well as a strong balance sheet. Operated by Deer's founders and
supported by more than 100 patents, trademarks, copyrights and
approximately 2,000 staff, Deer is a leading provider of "DEER"
branded consumer products to Chinese consumers and a leading
vertically integrated manufacturer of small home and kitchen
appliances for global customers. DEER's product lines include
series of small household and kitchen appliances as well as
personal care products designed to make modern lifestyles easier
and healthier.
SAFE HARBOR STATEMENT
All statements in this press release that are not historical are
forward-looking statements made pursuant to the "safe harbor"
provisions of the Private Securities Litigation Reform Act of 1995.
There can be no assurance that actual results will not differ from
the company's expectations. You are cautioned not to place undue
reliance on any forward-looking statements in this press release as
they reflect Deer's current expectations with respect to future
events and are subject to risks and uncertainties that may cause
actual results to differ materially from those contemplated.
Potential risks and uncertainties include, but are not limited to,
the risks described in Deer's filings with the Securities and
Exchange Commission.
Contact Information:
Corporate Contact:
Ms. Helen Wang, President
Deer Consumer Products, Inc.
Tel: 011-86-755-86028300
Email: investors@deerinc.com
SOURCE Deer Consumer Products, Inc.