Longmont, Colorado, USA
November 25, 2024
S&W Seed Company (Nasdaq: SANW) today announced it has finalized the voluntary plan of administration ("VA") process for its subsidiary, S&W Seed Company Australia Pty Ltd ("S&W Australia").
"As a result of the VA process being completed, on a go forward basis S&W is exclusively focused on its core U.S.-based operations led by our high margin Double Team sorghum solutions as well as our biofuels joint venture with Shell," commented S&W Seed Company's CEO, Mark Herrmann.
As previously reported, S&W Australia adopted a voluntary administration process on July 24, 2024, and on October 11, 2024 creditors of S&W Australia approved a proposed Deed of Company Arrangement ("DOCA") pursuant to which, among other things, 100% of the shares in S&W Australia would be transferred to Avior Asset Management No. 3 Pty Ltd. The effective date of the DOCA is November 22, 2024.
In order to facilitate the satisfaction of certain conditions to the effectiveness of the DOCA, on November 22, 2024, S&W entered into a settlement agreement in exchange for a release from the intercompany obligations owed to S&W Australia. S&W will transfer ownership of certain white clover and alfalfa (lucerne) intellectual property, provide the associated inventory, repay insurance proceeds received on behalf of S&W Australia, and provide transitional support to S&W Australia necessary to assist in the changeover of business operations to a standalone entity. S&W also entered into an agreement with National Australia Bank Limited that releases S&W from the AUD $15.0 million guarantee and obtained a release of certain applicable liens from CIBC Bank USA.
Vanessa Baughman, CFO of S&W Seed Company, commented, "The effectuation of the DOCA has resulted in providing the resources we believe are needed to create a going concern for all entities."
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