Yongye Intl (NASDAQ:YONG)

BEIJING, June 10, 2011 /PRNewswire-Asia-FirstCall/ -- Yongye International, Inc. (NASDAQ: YONG), a leading agricultural nutrient company in China ("Yongye International" or the "Company"), today announced the closing of the previously announced $50 million equity investment by Morgan Stanley Private Equity Asia ("MSPE Asia"). The Company also announced the appointment of Mr. Homer Sun, Managing Director of Morgan Stanley who leads MSPE Asia's China Investments, to the Board of Directors of the Company.

Mr. Zishen Wu, Chairman and Chief Executive Officer of Yongye International, stated, "We are pleased to announce the closing of this investment and the appointment of Mr. Sun to our board. We look forward to the future strategic cooperation with MSPE Asia as we continue to grow our business. We believe this transaction will not only provide us with the financial resources to expand our operations to meet the growing demand for our Shengmingsu agricultural nutrient products but also will further enhance our corporate governance."

Yongye International,  announced that the Company's operating subsidiary, Yongye Nongfeng Biotechnology ("Yongye Nongfeng"), entered into two new revolving credit facilities totaling RMB 400 million (approximately $59 million).

GeoTeam® Note: We feel that capital infusion via debt can help establish credibility for a company, as lenders have likely scrutized financial statments.