AgriBioTech Inc. announces $25 million in equity and debt financing arranged.LAS VEGAS--(BUSINESS WIRE)--Oct. 1, 1996--Dr. Johnny R. Thomas, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of AgriBioTech Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ABTX) Tuesday announced that the company has arranged for an aggregate of approximately $25 million in equity and 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 . The company has received approximately $10 million in net equity through a combination of a private placement of its Class C Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , with net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $8,650,000, and the exercise of existing options and warrants with net proceeds of $1,350,000. The company has recently received proceeds from the exercise of existing options with $1.81 to $2.50 exercise prices and B warrants with a $5 exercise price. The company has been advised that the Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. (Nevada) loan committee has approved an increase in its current $4.5 million credit line to $15 million. Access to the increased credit line is subject to completion of loan documentation and borrowing base limitations affected by levels of eligible inventory and receivables, debt to equity ratios The debt to equity ratio (D/E) is a financial ratio indicating the relative proportion of equity and debt used to finance a company's assets. It is equal to total debt divided by shareholders' equity. and other variables. In conjunction with the above referenced exercise of options and warrants, 500,000 of the $2.50 options have been canceled. Through utilization of the company's cash redemption rights the company has also redeemed 353,443 common shares which otherwise would have been issued pursuant to the conversion of Series B Convertible Preferred Stock. The company expects to close its eleventh acquisition, previously announced as pending, within two weeks. Documentation preparation is progressing. The company recently received Federal Trade Commission clearance relative to Hart, Scott, Rodino filings for the transaction to proceed. ABT ABT About ABT Abteilung (German: Department) ABT Abbott Laboratories (stock symbol) ABT American Ballet Theatre ABT Associação Brasileira de Telemarketing ABT Abort ABT Availability Based Tariff is rapidly becoming a fully integrated forage and turf seed company complete with research & development of proprietary seed varieties, seed processing plants, and a national distribution network. The company has completed 10 acquisitions during the past 20 months and expects to acquire several more forage and turf seed companies in fiscal 1997. The statements discussed in this news release include forward looking statements that involve a number of risks and uncertainties. These include the company's 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. John C. Francis, 702/798-1969 or Liviakis Financial Communications Robert B. Prag, 916/448-6084 |
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