Henderson, Nevada
January 4, 1999AgriBioTech,
Inc. ("ABT") (NASDAQ National Market: ABTX) announced today that the Company
has received $15 million from the first closing of a long-term convertible debt financing
at a fixed conversion price. The proceeds from the long-term debt will be used for
short-term debt retirement, working capital and pending acquisitions. The long-term debt
will lower the Company's interest cost. Additional details on the funding will be made
available upon completion of the offering.
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."
Final due diligence on the previously announced (October 29, 1998)
pending acquisition of the alfalfa business unit and the international sorghum business
unit of AgriPro Seeds, Inc. revealed a
number of adverse changes and inconsistent business practices in the business since the
initial due diligence and signing of the letter of intent. The adverse changes do not
detract from the Company's willingness to complete the acquisition. However, the purchase
terms would need to reflect the business changes. According to Dr. Thomas, "the
Company continues to maintain forage and turfgrass seed industry leadership in germplasm,
market share, personnel and biotechnology, with or without the acquisition."
