Tianli Agritech, a leading producer of breeder hogs, market hogs and black hogs headquartered in Wuhan City, China, announced that the company has completed a $3.84 million private placement of its common stock to Mr. Houliang Yu, a citizen of the PRC.

Pursuant to a Regulation S Subscription Agreement entered into on June 6, 2014, the Company issued and sold 1.6 million shares of its common stock to Mr. Yu for an aggregate consideration of $3.84 million, or $2.40 per share.

The offering price represents an approximately 11.6% premium over the closing price of $2.15 on June 6, 2014. Upon completion of the Offering, the Company had 21,164,000 common shares outstanding, of which Mr. Yu owns approximately 7.56%.

The Company intends to use the proceeds from this Offering and cash on hand to pursue accretive M&A opportunities.

Mr. Yu currently resides in Wuhan City, Hubei Province and serves as Chief Financial Officer of Aoxin Holdings Co. Ltd. (Aoxin), a diversified holding company whose main business is in industrial park development and operations. Mr. Ping Wang, Tianli's Chairman and Chief Executive Officer, is a major shareholder and Chairman of Aoxin.

As a condition of the Offering, Mr. Yu agreed not to sell the Shares for 12 months and thereafter at not less than $2.40 per share.