Fresno, California, USA
March 18, 2015
S&W Seed Company (Nasdaq: SANW) today announced the Company has completed the previously announced agreements to sell 759 acres of farmland in Calipatria, California, for $7.1 million. Following the repayment of the existing $2.2 million mortgage on the Calipatria farmland, the Company has utilized the remaining proceeds towards prepayment of $5.0 million of the convertible debentures recently issued in connection with the Company's acquisition of DuPont Pioneer's alfalfa seed production and research assets, reducing interest expense and potential dilution associated with the convertible debentures.
Concurrent with the farmland sale, the Company has signed an agreement with the purchaser of the Calipatria farmland for continued alfalfa seed production of the Company's proprietary alfalfa seed varieties on a contracted basis.
Mark Grewal, chief executive officer of S&W Seed Company, commented, "We continue to execute on our business strategy by focusing on our core competencies to drive value going forward. The farmland sale and grower contracting allows us to continue production of our elite S&W varieties, while at the same time reducing debt, interest expense and potential dilution, as well as working capital needs for farming. The acquisition of DuPont Pioneer's alfalfa seed production and research assets has created the largest and most diversified alfalfa seed company in the world with product capabilities that span all dormancies, providing both biotech and non-biotech capabilities, with diversified production and distribution capabilities that allow S&W to become the 'go-to' alfalfa seed company for farmers around the world. We look forward to capitalizing on the opportunities we have created going forward."
The Company is in the process of finalizing the sale of an additional 30 acres of farmland in Five Points, California, which it anticipates closing in the coming months.
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