NEW YORK, Dec. 27, 2006 (PRIME NEWSWIRE) -- AgFeed Industries, Inc. (OTCBB:AGFI) yesterday announced that it closed a share purchase agreement to acquire all of the shares of Guangxi Huijie Sci.&Tech. Feed Co., Ltd., for RMB 8,600,000 (approximately US$1.09 million) in cash.
Funding for the acquisition was secured by a short-term loan to the Company.
About Guangxi Huijie Sci.&Tech. Feed Co., Ltd.
Guangxi Huijie Sci.&Tech. Feed Co., Ltd. was incorporated under the laws of the People's Republic of China on August 2nd, 2004, in Guangxi Province. The company is engaged in the research & development, manufacture, marketing, and sale of pre-mix feeds, concentrated feeds and blended feeds in China. It offers multiple product brands and pricing levels to cater to all levels of customers. Currently, the entity is mainly selling in provinces of south China including Guangxi province, Guizhou province, Yunnan province and fraction of Henan province. The unaudited financial results for the 9 months of the year 2006 of Guangxi Huijie Sci.&Tech. Feed Co., Ltd. show revenue of approximately US$1.863 million and net profit US$0.276 million.
About AgFeed Industries, Inc.
AgFeed Industries, Inc. is engaged in the business of manufacturing and selling animal feed for the animal husbandry markets in the eastern regions of China, including sales of products to large swine farms and distributors. The company has two operating subsidiaries that manufacture pre-mix fodder and blended feeds primarily for swine, and are among the top producers of such products in their respective regions in Jiangxi province and Shanghai City.
Safe Harbor Statement
Certain forward-looking statements made on this press release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based on current management expectations that involve risks and uncertainties that may result in such expectations not being realized. Potential risks and uncertainties include, but are not limited to the risks described in the company filings with the Securities and Exchange Commission.