April 29, 2008

 

AgFeed announces completion of US$25.2 million equity financing

 

 

AgFeed Industries Inc. announced Monday that it has completed the previously mentioned US$25.2 million equity financing in a registered direct placement with institutional investors.

 

After this financing, AgFeed has a total of 32,005,927 shares issued and outstanding, of which AgFeed's management and affiliates own approximately 41 percent.

 

AgFeed has recently announced it expects to acquire, by early May 2008, multiple producing commercial hog farms at less than 3 times projected 2008 net income.

 

So far, the company said it is on track to achieve the target. The current hog market price in the regions where AgFeed sells its hogs is approximately US$270 each based on an average hog weight of 105 kilogrammes.

 

The acquisition of the farms, scheduled to be completed in May 2008, would increase AgFeed's estimated sale of hogs to 400,000 heads for 2008.

 

Proceeds from the financing just completed and the US$10 million registered direct offering completed on April 21, 2008 will be used to acquire additional, already identified, producing commercial hog farms beyond those anticipated for closing in early May.

 

AgFeed Industries Inc. is a NASDAQ Global Market listed US public company headquartered in China.

 

It is the largest premix feed company in China as of the end of 2007 by revenues and intends to be the 2nd largest commercial hog producer by the total number of hogs produced annually upon completion of multiple hog farm acquisitions anticipated in April 2008.

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