AgFeed Completes $41 Million Financing

by 5m Editor
3 March 2008, at 1:25pm

CHINA - AgFeed Industries, Inc, a market leader in China's premix animal nutrition and hog raising industry, has announced the completion of its $41 million financing.

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

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

AgFeed intends to use the proceeds to rapidly expand its two current business lines - 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.

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

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

To read the full story click here.

5m Editor