First Growth Investors, Inc. today reported the closing of a stock exchange transaction with the shareholder of Bright Stand International, Ltd., the British Virgin Islands company which owns 100% of Yuhe Poultry Limited and Weifang Taihong Feed Co., Ltd., collectively named "Yuhe Poultry".
Yuhe Poultry is one of the leading broiler producers in China, which reported consolidated net sales of approximately $16 million and consolidated net income of approximately $5 million, for the nine months ended September 31, 2007.
As a result of the exchange transaction with the BVI company, Yuhe Poultry and Weifang Taihong Feed became indirect wholly-owned subsidiaries of First Growth. The companies will operate on a consolidated basis upon the business plan of Bright Stand and its Chinese-based subsidiaries.
First Growth closed a private placement of its capital stock whereby it received approximately $18 million in gross offering proceeds, before payment of commissions and fees. Also, the shareholders of BVI-based Bright Stand sold shares of First Growth to participants in the private placement, resulting in gross proceeds of approximately $3 million to the selling shareholder.
As a result of the share exchange transaction, BVI registered Bright Stand's shareholders, including participants in the $3 million private offering, was issued 126,857,134 shares of Firsth Growth's common stock in exchange for shares of Bright Stand.
Roth Capital Partners, LLC was the placement agent in the $21 million financing transaction.
