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EcoScience Announces Extension of Note; Agro Dynamics, Inc. Subsidiary Refinances Line of Credit.

EAST BRUNSWICK, N.J.--(BUSINESS WIRE)--July 2, 1999--

EcoScience Corporation (OTCBB:ECSCE), the largest U.S. producer of premium, greenhouse grown tomatoes, announced today that it has reached an agreement to extend the due date of a note that would otherwise have been payable June 30, 1999.

The agreement calls for the extension of the due date to July 31, 1999 of a $21.6 million note that was issued to Cogentrix Energy, Inc., in connection with the Company's acquisition of Cogentrix's interest in four greenhouse operations in which both the Company and Cogentrix were partners. The Company and Cogentrix are currently discussing a restructuring of the debt.

EcoScience also announced that its Agro Dynamics, Inc. subsidiary has entered into a new revolving loan agreement with Century Business Credit Corporation for borrowings of up to $4 million secured by eligible accounts receivable and inventory, as defined. This agreement, which has an initial two-year term, replaces a $3 million revolving credit facility with Silicon Valley Bank. Proceeds from the new revolving loan facility were used to retire the $750,000 of borrowings outstanding under the Silicon Valley Bank loan.

The Nasdaq Stock Market has advised the Company that effective the close of business on June 30, 1999, the Company's securities have been delisted from the Nasdaq SmallCap Market for failure to meet certain financial requirements set forth in the Nasdaq listing criteria. The stock will trade on the OTC Bulletin Board.

Ecoscience is the leading domestic producer, marketer, and distributor of high quality greenhouse grown tomatoes and uses advanced and environmentally sound technology to provide customers with nutritious, safe, better tasting and more appealing fresh produce. The Company markets its premium beefsteak and cluster on-the-vine tomatoes under the Village Farms(R) and Home Choice(TM) brand names. In addition, Ecoscience develops, markets, and distributes biological and agricultural products.

This press release contains "forward-looking statements" which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that known and unknown risks, uncertainties and other factors may cause actual results, performance or achievements of EcoScience to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such differences include EcoScience's risks and uncertainties related to EcoScience's future profitability, ability to meet its capital needs, government regulation, continued cooperation of the Company's creditors, competition, market acceptance, year 2000 compliance and other factors described in Item 7A and elsewhere in EcoScience's annual report on Form 10-K and other filings with the Securities and Exchange Commission.

To receive additional information on EcoScience Corporation, please visit our website at www.EcoScience.com.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 2, 1999
Words:447
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