ABTX at 11 15/16 is the pick!!Conference call begins shortly!
Company Press Release
AgriBioTech Inc. on Target in Every
Respect
LAS VEGAS--(BUSINESS WIRE)--Aug. 26, 1998--Dr. Johnny R. Thomas, chairman and chief
executive officer of AgriBioTech Inc. (Nasdaq:ABTX - news), Wednesday announced that the
company is continuing to increase its forage and cool-season turfgrass leading market position,
germplasm base, world class management team and to obtain biotechnology access as planned.
Management can only attribute recent declines in the company's common stock price to lies placed
on the Internet by short sellers, with no basis in fact. An overview of facts concerning the company's
business plan is as follows.
No Restatement of Financials: There will not be a restatement of any of the company's
financial statements.
Securities and Exchange Commission Review: The company underwent a full review by the
SEC, with particular emphasis on accounting issues (March 10, 1998 - Aug. 14, 1998). The
company registration statements were declared effective on Aug. 14, 1998. Any amendments
to prior SEC filings by the company did not result in any restatement or any change in sales,
earnings, assets or equity previously reported by the company. There is no more further
review.
Fourth Quarter and Fiscal 1999 Performance: As reported (Aug. 19) by the company and
analysts covering the company, the company will recognize revenues, assets, equity and
earnings of acquisitions ''at closing'' as opposed to ''effective dates'' commencing April 1,
1998. This change was made three months earlier then planned in order to have an effective
registration statement by Aug. 14. However, the company's 10-K will show results with both
effective and closing date income recognition to allow shareholders to compare performance
with expectations. Fiscal 1999 projections previously announced by analysts have not been
changed since the company was planning to recognize acquisitions at closing effective July 1,
1998.
Pending Announced Acquisitions: The company has closed 14 acquisitions since Jan. 1 and
only one announced pending acquisition remains to be closed (Oseco Inc.). This acquisition is
expected to close within two weeks.
Future Acquisitions: The company continues to successfully negotiate for new acquisitions to
enhance market share and germplasm. Thomas expects, ''the company's annualized revenue
run rate to reach the $500 million target by Dec. 31, 1998, two years ahead of schedule.''
Shelf Registration Statements: The company's effective registration statement provides
management flexible access to capital when needed to effectively implement the company's
business plan. According to Thomas, ''all shareholders who embrace management's plans to
'build franchise value' should eagerly anticipate additional capital formation, since management
will only access capital when business opportunities exceed the cost of capital.''
Continued Growth vs. No Growth: The company is at a unique stage of development. There
are no acquisition candidates which must be acquired to accomplish company objectives;
however, there are acquisition candidates which if acquired would increase shareholder value
more than the cost of capital.
Biotechnology Access: The company continues to advance several very important
negotiations toward a successful conclusion.
Conference Call: Thomas will host a conference call at 10 a.m. Eastern, on Aug. 26, 1998 to
answer any questions. Shareholders may call in on 800/230-1092. The call will be available
on replay by calling 800/475-6701, access code No. 403509.
Web Site Changes: The company has deleted analyst reports and chairman's updates from its
Web site as a direct result of the SEC registration process. According to Thomas, ''it is
unfortunate that management is unable to provide more complete information on the company
to shareholders.''
AgriBioTech is a fully integrated, full-service seed company specializing in the forage and turfgrass
seed sector, complete with research and development of proprietary seed varieties, seed processing
plants and a national and international distribution and sales network.
The company has completed 30 acquisitions since Jan. 1, 1995 and is the largest forage and
cool-season turfgrass seed company in the United States, with a current level of annualized net sales
of approximately $425 million, including the previously announced pending acquisition of Oseco.
The statements discussed in this news release include forward-looking statements that involve a
number of risks and uncertainties. These include the company's historical lack of profitability, need to
manage its growth, intense competition in the seed industry, seasonality of quarterly results and other
risks detailed from time to time in the company's SEC reports.
Contact:
AgriBioTech Inc., Henderson, Nev.
John Francis, 702/566-2440
702/566-2450 (fax)
www.agribiotech.com |
