NEW YORK, November 24, 2011 /PRNewswire-Asia/ -- AgFeed Industries, Inc. (Nasdaq: FEED, NYSE Alternext: ALHOG), announced today that it has received notice from The NASDAQ Stock Market ("Nasdaq") that, because the Company has not yet filed its Quarterly Report on Form 10-Q for the period ended September 30, 2011 (the "10-Q") with the Securities and Exchange Commission (the "Commission"), the Company no longer complies with the continued listing requirements under Nasdaq Marketplace Rule 5250(c)(1).
As previously reported by the Company in its Notification of Late Filing on Form 12b-25, filed with the Commission on November 10, 2011, the Company was unable to file the 10-Q within the prescribed period due to the ongoing investigation of the special committee of the board of directors (the "Special Committee"). As previously disclosed, on September 29, 2011, the Company announced that its board of directors appointed the Special Committee to investigate the accounting relating to certain of the Chinese farm assets (acquired during 2007 and 2008) used in the Company's Chinese hog production business, the validity and collectability of certain of the Company's accounts receivable relating to its Chinese animal nutrition business, and any other issues that may arise during the course of its investigation (the "Investigation"). The Special Committee engaged the law firm of Latham & Watkins ("L&W") to serve as its independent counsel in connection with the Investigation, and L&W retained the forensic accounting firm of FTI Consulting to serve as its forensic accounting advisor. The Special Committee has not completed the Investigation or arrived at any final conclusions. The Special Committee is continuing its investigation, and no assurance can be provided as to when the Investigation will be completed.
The Company is required to submit a plan to regain compliance with Nasdaq's requirements for continued listing, and, under the discretionary authority under Nasdaq Marketplace Rule 5101, in order to expedite the review process, Nasdaq is requiring that the plan must be submitted no later than December 19, 2011. If Nasdaq accepts the plan submitted by the Company, Nasdaq can grant an exception of up to 180 calendar days from the due date of the 10-Q to regain compliance. The Company intends to submit to Nasdaq, on or before December 19, 2011, a plan to regain compliance with Nasdaq's requirements for continued listing. There can be no assurance that the Company will successfully regain compliance with such requirements.
If Nasdaq does not accept the Company's plan, Nasdaq will provide notice that the Company's common stock will be subject to delisting. The Company would have the right to appeal a determination to delist its common stock, and the common stock would remain listed on the Nasdaq Global Select Market until the completion of the appeal process.
The Company intends to submit the 10-Q as soon as practicable after the completion of the Investigation by the Special Committee.
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 nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western-style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50% of global production and over 62% of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status.
SAFE HARBOR DISCLOSURE NOTICE
The information provided herein contains forward-looking statements based on certain assumptions and contingencies that involve risks and uncertainties. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and relate to the Company's ability to file its Quarterly Report on Form 10-Q for the period ended September 30, 2011 and subsequent periodic reports under the Securities Exchange Act and comply with the continued listing requirements under the Nasdaq Marketplace Rule 5250(c)(1). The forward-looking statements in this Current Report on Form 8-K involve risks and uncertainties, which could cause actual results, performance or trends to differ materially from those expressed in the forward-looking statements herein or in previous disclosures. The Company believes that all forward-looking statements made by it have a reasonable basis, but there can be no assurance that management's expectations, beliefs or projections as expressed in the forward-looking statements will actually occur or prove to be correct. In addition to general industry and economic conditions, factors that could cause actual results to differ materially from those discussed in the forward-looking statements in this Current Report include, but are not limited to factors that could affect the Company's business, financial conditions and results of operations included in the Company's Annual Report on Form 10-K under the caption "Risk Factors," as updated by the Company's subsequent filings with the Commission, all of which are available at the Commission's website at http://www.sec.gov. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date of this Current Report, even if subsequently made available by the Company on its website or otherwise. The Company does not intend, and disclaims any obligation, to update any forwarda？？looking information contained in this Current Report or with respect to the announcements described herein.
Contact: Investor Relations: AgFeed Industries, Inc. http://www.agfeedinc.com/contact
The Company's policy is to handle all questions through electronic submission to http://www.agfeedinc.com/contact. Questions received through the electronic system will be answered as soon as possible.
