Nutrastar International Inc. Expands Strategic Partnerships with Private Share Transactions - MyFoxTallahassee.com

Nutrastar International Inc. Expands Strategic Partnerships with Private Share Transactions

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SOURCE Nutrastar International Inc.

Accretive Capital Partners purchases 300,000 additional shares, bringing total ownership to 12%; new strategic investors, MLTH and affiliates, purchase 1.6 million shares.

HARBIN, China, June 26, 2014 /PRNewswire/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), health beverages, and organic and specialty foods, today announced that its CEO, Ms. Lianyun Han, has completed two strategic private share purchase transactions for a total of 1.9 million shares, reducing her ownership and voting power in the Company from approximately 46.9% to approximately 36.0% on a fully diluted basis.

The first transaction of 300,000 restricted shares at a previously negotiated purchase price of $1.40 per share was completed with its long-term and value-added shareholder, Accretive Capital Partners ("Accretive Capital"), a private investment fund founded and managed by Richard Fearon, an active member of Nutrastar's Board of Directors. Founded in 2000, Accretive Capital targets undervalued small and micro-cap public companies that represent attractive take-private candidates. The fund has been nationally ranked by Morningstar, Barron's Magazine, Bloomberg, Lipper, and Barclay Managed Funds, was recipient of HFM Week Magazine's 2011 Best Single Manager Long-Term Performance award among all U.S. hedge funds under $250 million, and was named finalist for PAM Magazine's 2014 Best Wealth Manager Long-Term Performance award.

Post transaction, Accretive Capital's ownership increased from 10.4% to approximately 12.0% on a fully-diluted basis. The fund has grown its position in Nutrastar since first investing in January 2011 and has been a value-added partner for over three years. Richard Fearon, Founder and Managing Partner of Accretive Capital and member of Nutrastar's Board of Directors, commented, "We are pleased to increase our investment at this pivotal point in Nutrastar's evolution into a global nutraceutical supplier. Our team is focused on helping Nutrastar penetrate new markets internationally while sustaining its impressive expansion domestically, and we are committed to offering continued strategic and financial guidance."

The second transaction of 1.6 million restricted shares at a negotiated purchase price of $2.00 per share was completed with Beijing MLTH Fortune Investment Management Co., Ltd. (MLTH) for 1 million shares and with two affiliated investors for 600,000 shares. MLTH is a specialized fund management company with approximately RMB1.1 billion under management. The fund and its managing partner have developed key strategic relationships and partnerships with many pharmaceutical and nutraceutical companies in China, including Harbin Pharmaceutical Group, Dalian Hui-Li Biological Health Products Co., Ltd., and Heilongjiang Beiqishen High-tech Health Products Co., Ltd. MLTH offers professionally managed investment portfolios for investors throughout China, designed to meet the varying needs, risk profiles and time frames of each investor.

Post transaction, the combined ownership of MLTH and the affiliated investors equates to approximately 9.1% on a fully-diluted basis. Mr. Baiqing Su, General Partner of MLTH, stated, "After careful consideration and extensive due diligence, we approached the company to gauge their interest in accommodating a strategic investment from our fund. From the very beginning, and after meeting with management, we have been keenly interested in Nutrastar's growth opportunities. We are particularly impressed by the company's leading market position in the production and sale of commercial Cordyceps throughout China and its continued ability to grow market share while introducing new and exciting complementary products. We look forward to working with Nutrastar as they expand domestically and to supporting them as they enter western markets and begin competing internationally. We are thankful that Ms. Han shares our vision and has the confidence in us as a strategic partner to allow us to purchase a portion of her shares."

Ms. Lianyun Han, Nutrastar's Chief Executive Officer, commented, "In response to continued investor concerns over my voting power and the request for shares to purchase, we decided to further reduce my holdings in the Company. I am pleased to hand-over these shares to our long-time shareholder and partner, Accretive Capital, and to our new strategic shareholders, MLTH and their affiliated parties, both of which are highly devoted to seeing Nutrastar succeed domestically and internationally."

Ms. Han continued, "We would like to thank Accretive for its continued guidance, support, and belief in our Company and the enormous potential of our products as demonstrated, yet again, by their increased ownership in Nutrastar. Moreover, we would like to welcome MLTH to the group. Having several large players in the consumer, health, nutraceutical, and pharmaceutical space in China as clients and an active presence in those markets, MLTH will not only be a long-term investor key to our growth, but also a strategic partner to the Company, which will be instrumental in helping us to meet and expand upon our defined growth initiatives."

About Nutrastar International Inc.

Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages, as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: ir@nutrastarintl.com

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Safe Harbor Statement

This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Howard Gostfrand
American Capital Ventures
Tel: +1-305-918-7000
Email: info@amcapventures.com

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