LONGMONT, Colo., Nov. 25,
2024 /PRNewswire/ -- S&W Seed Company (Nasdaq:
SANW) today announced it has finalized the voluntary plan of
administration ("VA") process for its subsidiary, S&W Seed
Company Australia Pty Ltd ("S&W Australia").
"As a result of the VA process being completed, on a go forward
basis S&W is exclusively focused on its core U.S.-based
operations led by our high margin Double Team sorghum solutions as
well as our biofuels joint venture with Shell," commented S&W
Seed Company's CEO, Mark
Herrmann.
As previously reported, S&W Australia adopted a voluntary
administration process on July 24,
2024, and on October 11, 2024
creditors of S&W Australia approved a proposed Deed of Company
Arrangement ("DOCA") pursuant to which, among other things, 100% of
the shares in S&W Australia would be transferred to Avior Asset
Management No. 3 Pty Ltd. The effective date of the DOCA is
November 22, 2024.
In order to facilitate the satisfaction of certain conditions to
the effectiveness of the DOCA, on November
22, 2024, S&W entered into a settlement agreement in
exchange for a release from the intercompany obligations owed to
S&W Australia. S&W will transfer ownership of certain white
clover and alfalfa (lucerne) intellectual property, provide the
associated inventory, repay insurance proceeds received on behalf
of S&W Australia, and provide transitional support to S&W
Australia necessary to assist in the changeover of business
operations to a standalone entity. S&W also entered into an
agreement with National Australia Bank Limited that releases
S&W from the AUD $15.0 million
guarantee and obtained a release of certain applicable liens from
CIBC Bank USA.
Vanessa Baughman, CFO of S&W
Seed Company, commented, "The effectuation of the DOCA has resulted
in providing the resources we believe are needed to create a going
concern for all entities."
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 alfalfa and
proprietary sorghum seeds with significant research and
development, production and distribution capabilities. S&W also
is focused on sustainable biofuel feedstocks primarily within
camelina through its partnership. 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 "ability," "believe," "may," "future," "plan," "intends"
"should" or "expects." Forward-looking statements in this release
include, but are not limited to: our belief that the effectuation
of the DOCA has resulted in providing the resources necessary for
S&W to continue as a "going concern." 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 risks and uncertainties
related to: market adoption of products designed to
support the energy transition and customer demand for our
partnership's products; the effects of unexpected weather and
geopolitical and macroeconomic events, such as global inflation,
bank failures, supply chain disruptions, uncertain market
conditions, the armed conflict in Sudan, the import ban on alfalfa seed in
Saudi Arabia, the ongoing military
conflict between Russia and
Ukraine and related sanctions and
the conflict in the Middle East,
on our business and operations as well as those of our partnership,
and the extent to which they disrupt the local and global
economies, as well as our business and the businesses of our
partnership, our customers, distributors and suppliers; sufficiency
of our partnership's cash and access to capital in order to develop
its business; the sufficiency of our cash and access to capital in
order to meet our liquidity needs, including our ability to pay our
growers as our payment obligations come due; our need to comply
with the financial covenants included in our loan agreements,
refinance certain of our credit facilities and raise additional
capital in the future and our ability to continue as a "going
concern"; changes in market conditions, including any unexpected
decline in commodity prices, may harm our results of operations and
revenue outlook; our proprietary seed trait technology products,
including Double Team, may not yield their anticipated benefits,
including with respect to their impact on revenues and gross
margins; changes in the competitive landscape and the
introduction of competitive products may negatively impact our
results of operations; demand for our Double Team sorghum solution
may not be as strong as expected; our business strategic
initiatives may not achieve the expected results; previously
experienced logistical challenges in shipping and transportation of
our products may become amplified, delaying our ability to
recognize revenue and decreasing our gross margins; we may be
unable to achieve our goals to drive growth, improve gross margins
and reduce operating expenses; the inherent uncertainty and
significant judgments and assumptions underlying our financial
guidance; 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 us 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