Jeff,
Careful with ABTX. Might be going down in the short-term.
Prov
Friday January 22, 8:02 pm Eastern Time
Company Press Release
AgriBioTech Inc. Elects to
Suspend Search for a Strategic
Equity Partner
LAS VEGAS--(BUSINESS WIRE)--Jan. 22, 1999--Dr. Johnny R. Thomas, chairman and chief
executive officer, AgriBioTech Inc. (Nasdaq/NM:ABTX - news; ''ABT'') Friday announced
that due to market conditions, the company has decided to remain independent in order to
maximize shareholder value and suspend its previously announced efforts to find a strategic
equity partner.
According to Thomas: ''The purpose of the strategic alternative process was to evaluate with
outside professional guidance all alternative courses of actions to maximize shareholder value.
This process has led company management and the board of directors to the conclusion that the
best course is to focus its complete attention on continuing to build franchise value as measured
by market share, germplasm leadership, world-class seed personnel and biotechnology.''
Over the past two months, the company has raised approximately $50 million through the private
placement of equity, convertible debt and the sale of certain non-seed assets of Willamette Seed
Co.
The financings have permitted the company to pay off the $15 million overadvance facility under
its Revolving Credit Facility with Bank America Business Credit, and the $15 million bridge loan
from Deutsche Bank, which has resulted in providing the company with greater operating
flexibility. As a result of these financings, the company's near-term cash requirements have
largely been met.
Although the company will likely continue to pursue opportunistic acquisitions, management's
focus has shifted to maximizing the exceptional asset base which the company has acquired over
the past four years. Integration and biotechnology are expected to be the company's main focus
over the next year. Integration of the 33 acquired companies into one unified, customer-oriented
team is proceeding nicely.
The company's emerging biotechnology program is poised to lead the forage and turfgrass seed
sector in product development. Management expects significant additional biotechnology
developments.
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. AgriBioTech's
vision is to lead the turf and forage seed industry in discovering its value potential.
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, weather conditions, volatile stock price and other risks detailed from time to time in the
company's SEC reports.
Contact:
AgriBioTech Inc., Henderson
John Francis, 702/566-2440
702/566-2450 (fax)
www.agribiotech.com |
