AgriBioTech Inc. Increases Equity by $9.5 Million.LAS VEGAS--(BUSINESS WIRE)--May 5, 1998--Dr. Johnny R. Thomas, chief executive officer of AgriBioTech Inc. (Nasdaq/NM:ABTX), Tuesday announced that the company has successfully completed and received aggregate proceeds of approximately $9.5 million from private placements of its common stock since the prior private placements of $30.5 million disclosed in a news release dated April 1, 1998, for a total of $40 million. The company originally contemplated raising up to $50 million in equity financings Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . Accordingly, it is possible the company may accept up to $10 million in additional equity in addition to the debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay discussed below. The company sold an aggregate of 667,200 shares of unregistered AgriBioTech common stock at $13.75 per share, plus 241,600 warrants, sold at $1.50 per warrant, and exercisable at $17.50 per share. The stock has not been registered for resale under the securities laws. The purchasers of the company's securities were a group of investors led by Brown Simpson Asset Management LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . The company intends to use the proceeds of these private placements to close pending acquisitions in the immediate future. Management of the company has determined to pursue a high yield debt offering of at least $100 million, the terms of which are being negotiated. The company has also made substantial progress in the process of negotiating a long-term revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. substantially greater than its existing facilities. The company believe both of these debt arrangements can be completed prior to its June 30, 1998, fiscal year end. The combination of these debt instruments should be adequate to fund ongoing operations and the completion of the company's previously announced acquisitions and some future acquisitions currently under negotiation. AgriBioTech is a fully integrated full-service seed company specializing in the forage forage Vegetable food, including corn and hay, of wild or domestic animals. Harvested, processed, and stored forage is called silage. Forage should be harvested in early maturity to avoid a decrease in protein and fibre content as crops mature. and turfgrass seed sector, complete with research and development of proprietary seed varieties, seed processing plants, and a national and international distribution and sale network. The company has completed 22 acquisitions since Jan. 1, 1995, and is the largest forage and cool season turfgrass seed company in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with a current level of annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of approximately $426 million, including the previously announced pending acquisitions of Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. Fertilizer Co. Inc.; Williamette Seed Co.; Peterson Seed Co. Inc.; Geo. W. Hill & Co. Inc.; Fine Lawn Research Inc.; Geo W. Hill of Indiana Inc.; J&M Seed Co.; and Oseco Inc. -0- 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, and other risks detailed from time to time in the company's SEC reports. CONTACT: AgriBioTech Inc., Las Vegas John C. Francis, 702/566-2440 |
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