AgriBioTech Inc. today announced that it has reached an agreement in principle to sell substantially all of the assets relating to its forage business unit for an estimated $16 million of cash, subject to adjustment at closing. 

As part of the transaction, the purchaser is expected to assume the company's obligations under certain amended production contracts with its growers and other contracts. This sale, along with the disposition of the other forage related assets retained by the company, is expected to create a value of approximately $30 million. 

The purchased assets include real property, inventory and intangibles, including plant varieties and supply agreements. The purchaser is Research Seeds, Inc., a recognized worldwide leader in the development, production and marketing of proprietary forage, turf seed and microbial products. 

Completion of the transaction is subject to U.S. bankruptcy court and other governmental approvals, completion of a business and legal due diligence review by the purchaser, agreement on definitive documents and the absence of any material adverse change in the purchased assets. 

ABT is a seed company specializing in the forage and turfgrass sector. The transaction is the latest in a series of liquidating sales undertaken as part of the company's continuing Chapter 11 bankruptcy proceedings. ABT has been subject to federal bankruptcy court supervision since January 25, 2000. For further information regarding AgriBioTech's bankruptcy case, see the www.agribiotech.com Web site and/or the SEC's Web site filings for the latest 10-Q. 

Company news release
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