LONGMONT, Colo., Dec. 23,
2024 /PRNewswire/ -- S&W Seed Company (Nasdaq:
SANW) today announced it has closed a new $25 million revolving credit agreement with ABL
OPCO LLC ("Mountain Ridge") which replaces an existing facility
with CIBC Bank USA.
In connection with the Company's entry into the Mountain Ridge
credit agreement, MFP Partners L.P. ("MFP"), S&W Seed Company's
largest shareholder, provided a letter of credit with a face amount
equal to $13 million. The MFP letter
of credit is being used as collateral to support S&W's
obligations under the Mountain Ridge credit agreement providing the
Company with borrowing base credit under the Mountain Ridge credit
facility.
"S&W has implemented a number of strategic initiatives over
the past few months to exclusively focus on its core U.S.-based
operations, led by our high margin sorghum trait portfolio with
Double Team, while at the same time aligning our cost structure to
drive the business toward near-term profitability," commented
Vanessa Baughman, S&W's Chief
Financial Officer. "I believe today's announcement is a strong
endorsement from both our largest shareholder and new strategic
banking partner in the future of S&W and the opportunity it
represents going forward. I look forward to the continued execution
of our growth and profitability initiatives as we enter calendar
2025."
S&W also entered into a stock purchase agreement with MFP
pursuant to which the Company repurchased 200,000 shares of the
Company's common stock directly from MFP in a private,
non-underwritten transaction. The Repurchased Shares were retired
and restored to the status of authorized but unissued shares of the
Company. The Company also granted MFP the right to designate one
individual, who shall be a representative of MFP reasonably
acceptable to the Company, to attend all meetings of the Company's
Board of Directors and all committees of the Board in a non-voting,
observer capacity, subject to certain exceptions.
Full details of the Mountain Ridge and associated agreements is
available on Form 8-K to be filed with the SEC available at
www.sec.gov.
About S&W Seed Company
Founded in 1980, S&W is a global multi-crop, middle-market
agricultural company headquartered in Longmont, Colorado. S&W's vision is to be
the world's preferred proprietary seed company which supplies a
range of sorghum, forage and specialty crop products that supports
the growing global demand for animal proteins and healthier
consumer diets. S&W is a global leader in sorghum seeds with
significant research and development, production and distribution
capabilities. S&W also has a commercial presence in proprietary
alfalfa, and through a partnership, is focused on sustainable
biofuel feedstocks primarily within camelina. For more information,
please visit www.swseedco.com.
Safe Harbor Statement
This release contains "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended
and such forward-looking statements are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995. "Forward-looking statements" describe future expectations,
plans, results, or strategies and are generally preceded by words
such as "may," "future," "plan" or "planned," "will" or "should,"
"expected," "anticipates," "draft," "eventually" or "projected."
Forward-looking statements in this release include, but are not
limited to, statements regarding the expected benefits of the
Mountain Ridge credit facility, our success in executing our growth
and profitability initiatives, including our success in
aligning our cost structure to drive our business toward
near-term profitability, and our go forward business plan. You are
cautioned that such statements are subject to a multitude of risks
and uncertainties that could cause future circumstances, events, or
results to differ materially from those projected in the
forward-looking statements, including the risk that the Mountain
Ridge credit facility may not provide the anticipated benefits; the
risk that our go forward business plan may not be successful and
our strategic initiatives may not achieve the expected results; and
the risks associated with our ability to successfully optimize and
commercialize our business. These and other risks are identified in
our filings with the Securities and Exchange Commission, including,
without limitation, our Annual Report on Form 10-K for the year
ended June 30, 2024 and in other
filings subsequently made by the Company with the Securities and
Exchange Commission. All forward-looking statements contained in
this press release speak only as of the date on which they were
made and are based on management's assumptions and estimates as of
such date. We do not undertake any obligation to publicly update
any forward-looking statements, whether as a result of the receipt
of new information, the occurrence of future events or
otherwise.
Company Contact:
Mark
Herrmann, Chief Executive Officer
S&W Seed Company
Phone: (720) 593-3570
www.swseedco.com
Investor Contact:
Robert
Blum
Lytham Partners, LLC
Phone: (602) 889-9700
sanw@lythampartners.com
www.lythampartners.com
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SOURCE S&W Seed Company
