Davis, California, USA
August 8, 2019
Marrone Bio Innovations Inc. (NASDAQ: MBII), an international leader in sustainable bioprotection and plant health solutions, announced today that it has established a $36.6 million financing facility with existing investors Ospraie Ag Science LLC, Ardsley Partners Renewable Energy Fund, L.P., and Ivan Saval through a right for Marrone Bio to call the exercise of the investors’ outstanding warrants at $1.00 per share. New warrants to purchase shares at a higher exercise price of $1.75 will be issued on a one-for-one basis along with every called share under the outstanding warrants.
The company expects to draw upon the facility only as needed, and may draw on the facility at any time the company’s stock trades above $1.00 per share. The company has issued an initial $10 million drawdown, which is scheduled to complete by early September 2019. In addition to using a portion of the drawn funds for the acquisition of Pro Farm Technologies OY, also announced today, any resulting cash raised is anticipated to be sufficient to fund the current operating plan to a breakeven level, as well as fund near-term strategic alternatives.
Marrone Bio believes its entry into a definitive agreement for the acquisition of Pro Farm Technologies will drive substantial growth by expanding its global platform in the $4.6 billion seed- and soil-treatment markets. Pro Farm is being acquired through a combination of cash and Marrone Bio stock, and is expected to be accretive to net income and cash flow from operations in 2020.
“The establishment of this financing facility demonstrates the support of our largest investors to grow Marrone Bio as a leading biologicals platform company in the agricultural industry,” said Marrone Bio Chairman of the Board Bob Woods. “With the ability to call the exercise of existing warrants at its election, the Company is assured of the funds it needs to make strategic moves for the foreseeable future through a cost-effective vehicle.”
“Our participation in the warrant exercise facility strongly signals our belief in the growth potential of Marrone Bio in the burgeoning biostimulant market,” said Dwight Anderson, Founder of Ospraie Management LLC, an affiliate of the largest shareholder of Marrone Bio. “There are immediate opportunities to create a more powerful global commercial platform with greater long-term strategic alternatives. We think it is critical for Marrone Bio to participate in such opportunities, and thus our support for ensuring the Company has the ability to fund and fuel that growth.”
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