NEW YORK, June 25, 2007 (PRIME NEWSWIRE) -- AgFeed Industries, Inc. (OTCBB:AGFI) (http://www.agfeedinc.com), a leader in China's premix animal nutrition industry and the first such company publicly traded in the U.S., today announced that AgFeed completed a $3 million strategic investment by Apollo Asia Opportunity Master Fund, an affiliate of Apollo Management, a global leader in strategic financing and asset management. The strategic financing was completed at $4 per share, plus a three year warrant exercisable at $5.60. The Company will use the proceeds for strategic acquisition purposes.
Songyan Li, Ph.D., Chairman of AgFeed Industries, commented: "We are pleased to welcome a blue chip global strategic investor such as Apollo as one of our largest institutional shareholders. As the Chinese and world animal nutritional feed industry experience rapid consolidation, the Chinese domestic animal nutritional market is valued at $40 billion per year and presents an exciting growth opportunity for global feed companies that are entering the vast Chinese markets. As a market leader in China's premix feed industry with extensive product distribution channels, AgFeed is in a strategic position to benefit from domestic market growth and global consolidation opportunities. We look forward to continued growth in our core business as well as exploring all strategic opportunities that enhance our share value."
Also, AgFeed recently applied for a listing on the NASDAQ Stock Market.
About AgFeed Industries, Inc.
AgFeed Industries is the first China-based animal nutritional product company publicly traded in the U.S. Through its operating subsidiaries, which were founded in 1995 in China, AgFeed is a leading manufacturer, marketer and distributor of premix animal nutrition products targeting China's vast and growing animal feed market. China's animal feed market was approximately $40 billion in 2006 according to China Feed Industry Association.
Safe Harbor Statement
All statements in this press release that are not historical are forward-looking statements made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on any forward-looking statements in this press release as they reflect AgFeed's current expectations with respect to future events and are subject to risks and uncertainties that may cause actual results to differ materially from those contemplated. Potential risks and uncertainties include, but are not limited to, the risks described in AgFeed's filings with the Securities and Exchange Commission.