March 4, 2008

AgFeed completes US$41 million financing

China-based, AgFeed Industries, known in premix animal nutrition and hog raising industry, has announced the completion of its US$41 million financing.

The arrangement, advised by its financial advisor, Deutsche Bank Securities, is expected to fuel organic growth of the company and propel earning this year.

AgFeed sold a total of US$22 million in newly issued common stock at US$9 per share, plus an additional US$19 million in three-year, 7 percent bonds convertible into common stock at US$10 per share with 20 percent warrant coverage at a strike price of US$10 per share.

The company intends to use the proceeds to rapidly expand its two current business lines, the premix animal feed and hog raising through organic growth and strategic acquisitions.

AgFeed believes the completed financing is sufficient to reach the financial results outlined in its 2008 growth plan.

Currently, AgFeed has 29,471,943 shares of common stock issued and outstanding.

It previously provided 2008 guidance of approximately US$135 million in revenue, net income of approximately US$30 to US$33 million, and earnings per share (EPS) between US$0.96 and US$1.10 on a fully diluted basis.