May 7, 2009 (FinancialWire) — AgFeed Industries, Inc. (NASDAQ: FEED) (Current Market Cap: US$148.24 Mil.) said that it has agreed to sell 2.33 million shares of its common stock at $4.2925 per share for proceeds of around $10 million in a private placement transaction.

The transaction will include warrants to purchase an additional 1.16 million shares of common stock at an exercise price of $4.50 per share. The warrants will be exercisable immediately upon the closing of the transaction, and have a term of five years.

AgFeed plans to use the net proceeds from this financing for the development of its genetic program and other growth initiatives.

New York-based AgFeed Industries is a U.S. company with its primary operations in China. The company’s business lines include premix animal feed and hog production.

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