AgFeed Industries, Inc. Announces Filing of a Registration Statement for an Initial Public Offering of Shares in its Subsidiary AgFeed Animal Nutrition Holdings, Inc.

Oct 11, 2010, 06:55 ET from AgFeed Industries, Inc.

NEW YORK, Oct. 11 /PRNewswire-Asia/ -- AgFeed Industries, Inc. (Nasdaq: FEED, NYSE Alternext: ALHOG), an international agribusiness with operations in the U.S. and China and one of the largest independent hog production and animal nutrient companies in China, announced that its wholly owned subsidiary, AgFeed Animal Nutrition Holdings, Inc. ("AANI"), has filed a registration statement on Form F-1 with the U.S. Securities and Exchange Commission (the "SEC") for a proposed initial public offering ("IPO") of its Class A ordinary shares.  The number of ordinary shares to be offered and the price range for the offering have not yet been determined.

The registration statement relating to the IPO has been filed with the SEC but has not yet become effective.  The Class A ordinary shares, which will be sold in this IPO, may not be sold, nor may any offers to buy be accepted, prior to the time the registration statement becomes effective.

Rodman & Renshaw LLC will act as the underwriter for the IPO.

Dr. Songyan Li, AgFeed's Chairman, stated, "We believe that the carve out of AANI will be a positive development for our shareholders and for the business prospects of AANI.  Establishing a public market for AANI will provide an independent valuation of one of our business units that we feel has been overlooked by the market, thus unlocking value for AgFeed's shareholders.  As a public company in its own right, AANI will have a sharp strategic focus and will have independent access to both debt and equity capital to support its pursuit of a myriad of growth opportunities."

THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF ANY OFFER TO BUY, NOR SHALL THERE BE ANY SALE OF, THE SECURITIES DESCRIBED HEREIN IN ANY STATE OR JURISDICTION IN WHICH SUCH AN OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF SUCH STATE OR JURISDICTION.

THIS ANNOUNCEMENT IS BEING ISSUED PURSUANT TO AND IN ACCORDANCE WITH RULE 134 UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

When available, a copy of the preliminary prospectus may be obtained from Rodman & Renshaw LLC via telephone at (212) 356-0500.

ABOUT AGFEED INDUSTRIES, INC. 

NASDAQ Global Market Listed AgFeed Industries (www.agfeedinc.com) is an international agribusiness with operations in the U.S. and China.  AgFeed has two business lines -- animal nutrients in premix, concentrates and complete feeds and hog production. AgFeed is one of China's largest commercial hog producers in terms of total annual hog production as well as one of the largest premix feed companies in terms of revenues.  In the U.S. AgFeed's hog production unit, M2P2, is the market leader in setting new standards for production efficiency and productivity. The transfer of these processes, procedures and techniques will allow our Chinese hog production units to set new standards for production in China. China is the world's largest hog producing country that produced over 645 million hogs in 2009, compared to approximately 100 million hogs produced annually in the U.S. China also has the world's largest consumer base for pork consumption.  Over 62% of total meat consumed in China is pork.  Hog production in China enjoys income tax free status.  The swine feed markets in which AgFeed operates represent a $20 billion segment of China's $58 billion per year animal feed market.

SAFE HARBOR DISCLOSURE NOTICE 

Certain statements regarding AgFeed Industries and/or AANI set forth in this press release, including those regarding the completion of the transaction, contain forward-looking information and speak only as of the date of such statement.  You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects.  This forward-looking information is subject to numerous material risks, uncertainties and assumptions, certain of which are beyond the control of AgFeed Industries and/or AANI, including the impact of general economic conditions, industry conditions, volatility of commodity prices, currency fluctuations, environmental risks, competition from other industry participants, stock market volatility, ability to access sufficient capital from internal and external sources, and uncertainty of receiving approval from members of AANI for the transaction described herein. Readers are cautioned that the material assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and there can be no assurance that AgFeed Industries and AANI will enter into definitive agreements or that any transaction will be consummated.  Actual results, performance or achievement could differ materially from those expressed in, or implied by, this forward-looking information and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that AgFeed Industries and/or AANI will derive therefrom.  AgFeed Industries and AANI disclaim any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws.  For additional information and risk factors that could affect AgFeed Industries, see its filings with the Securities and Exchange Commission, including "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," including "Cautionary Statement for Forward-Looking Statements," set forth in its Quarterly Report on Form 10-Q for the period ended June 30,  2010.  The information contained in this press release is made as of the date of the press release, even if subsequently made available by AgFeed Industries on its website or otherwise.

Contact:  Investor Relations: AgFeed Industries, Inc.  Tel: (917) 804-3584  Email: ir@agfeedinc.com

The Company's policy is to handle all questions by email to ir@agfeedinc.com and they will be answered as soon as possible.

SOURCE AgFeed Industries, Inc.



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