Henderson,
Nevada
January 11, 1999AgriBioTech,
Inc. ("ABT") (NASDAQ National Market: ABTX) announced today that the Company
has completed the $25 million long-term convertible debt financing which was priced
December 30, 1998 and funded in two previously announced closings (January 4th
and January 8th). Terms of the long-term convertible debt offering are as
follows:
Type of Transaction: Private placement of unregistered securities.
Interest: 5% per annum, payable in cash or stock at the Company's
option.
Due Date: December 30, 2001, redeemable at 120% after six months at
the Company's option.
Conversion Terms: $13.68 per share, i.e. 110% of the December 30,
1998 share price when the offering was priced.
Warrant: Bondholders were allowed to purchase 1 warrant for each
potential conversion share at $1 per warrant. The exercise price for warrants is $15/share
for three years. The warrant has mandatory conversion terms when the Company's stock
trades above $25/share for 20 trading days out of 30 trading days.
Further details of the transaction are available in the exhibits to
the Company's Current Report on Form 8-K for December 30, 1998 filed on this date.
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."
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 January 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.
