March 30, 2010 (FinancialWire) — Sanderson Farms, Inc. (NASDAQ: SAFM) said it has launched an underwritten registered public offering of two million shares of its common stock.

In connection with this offering, the company plans to grant the underwriters a 30-day option to purchase up to an additional 300,000 shares of common stock to cover over-allotments.

Sanderson plans to use the net proceeds from the offering, together with other funds, to finance the construction of its new retail poultry complex in Kinston, North Carolina, and a potential new big bird poultry complex to be located near Goldsboro, North Carolina.

Pending such uses, it said the net proceeds from the offering may be used to reduce indebtedness and to invest in cash and cash equivalents. The company said it may use some of the invested proceeds as working capital and for general corporate purposes.

Mississippi-based Sanderson Farms is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items.

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