ABTX strikes back:
AgriBioTech Inc. Funds $15 Million of Long-Term Convertible Debt in First Closing
HENDERSON, Nev.--(BUSINESS WIRE)--Jan. 4, 1999--AgriBioTech Inc. ("ABT") (Nasdaq NM:ABTX) Monday announced that the company has received $15 million from the first closing of a long-term convertible debt financing at a fixed conversion price.
The proceeds from the long-term debt will be used for short-term debt retirement, working capital and pending acquisitions. The long-term debt will lower the company's interest cost. Additional details on the funding will be made available upon completion of the offering.
According to Dr. Thomas, "the prudent use of equity and long-term debt to repay short-term debt, fund pending acquisitions, and provide working capital has been part of management's plan for capital formation since the filing of registration statements in March 1998. Debt and equity placements are part of the company's normal financing activities. The company is proceeding on schedule with the previously announced strategic alternative process."
Final due diligence on the previously announced (Oct. 29, 1998) pending acquisition of the alfalfa business unit and the international sorghum business unit of AgriPro Seeds Inc. revealed a number of adverse changes and inconsistent business practices in the business since the initial due diligence and signing of the letter of intent. The adverse changes do not detract from the company's willingness to complete the acquisition. However, the purchase terms would need to reflect the business changes. According to Dr. Thomas, "the company continues to maintain forage and turfgrass seed industry leadership in germplasm, market share, personnel and biotechnology, with or without the acquisition."
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 33 acquisitions since Jan. 1, 1995 and is the largest forage and cool-season turfgrass seed company in the world, with a current level of annualized net sales of approximately $455 million, including the previously announced pending acquisitions of Moore Seed Processors and Production Plus+, which have annualized net sales aggregating approximately $15 million.
The statements discussed in this news release include forward-looking statements that involve a number of risks and uncertainties. These include AgriBioTech's historical lack of profitability, need to manage its growth, intense competition in the seed industry, seasonality of quarterly results, weather conditions, volatile stock price and other risks detailed from time to time in the company's Securities and Exchange Commission reports.
CONTACT:
AgriBioTech Inc., Henderson, Nev.
John Francis, 702/566-2440
fax, 702/566-2450
www.agribiotech.com
KEYWORD: NEVADA
BW0149 JAN 04,1999
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