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AgFeed Industries (FEEDQ US)

Year: 2011

US-Chinese hog company AgFeed Industries listed on the OTC market via a November 2006 reverse takeover, upgrading to the NASDAQ in August 2007. The company's share price began to fall in early 2011 as deteriorating financial performance and impairment losses revealed that there was clearly a problem with its Chinese operations. This was compounded by a number of resignations which culminated in the establishment of a special committee in September 2011 to address accounting irregularities at its Chinese operations. It transpired that AgFeed had kept two sets of books and provided a fraudulently inflated version to US investors in order to raise capital for acquisitions and expansion. Fake revenues and profits were hidden largely in receivables. AgFeed was delisted in 2012, applied for bankruptcy protection in July 2013 and was fined by the SEC in September 2014.

Last updated August 2021

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