LONGMONT, Colo., May 11, 2023
/PRNewswire/ -- S&W Seed Company (Nasdaq: SANW), a global
agricultural company, today announced that its Board of
Directors is evaluating potential avenues to unlock what the
Company sees as unrecognized value in its international operations,
which are headquartered within the Company's Australian
subsidiary.
Mark Wong, CEO, commented: "As
part of the overall review of our business commenced last May, we
have been looking to maximize value for shareholders through our
primary business units: US, International, Camelina and
Stevia. Our Australian team has been dedicated to improving
and optimizing our international operations over the past several
years, and we believe they have created substantial value that is
currently not being recognized by the broader markets.
Australia is a large and important
agricultural market and plays an integral role in the global food
supply chain. It also has a vibrant public and private equity
agricultural investment community, as well as several mid-sized
agricultural companies. We believe now is the right time for
us to conduct an accelerated review of our international
operations, with a view towards evaluating potential strategic
opportunities that could unlock unrecognized value for the benefit
of all our stakeholders."
S&W has retained Bell Potter Securities Limited as its
financial advisor and to assist the Board in its evaluation.
As part of the process, the Board expects to review a full range of
potential alternatives, which may include an IPO/Australian public
listing of S&W International, or a merger, reverse merger or
other business combination or strategic transaction involving the
Company's international operations – any of which would be expected
to help improve strategic focus, enhance financial transparency,
and better enable stakeholders to value separate components of the
Company's businesses independently.
The Company cautioned that there can be no assurance the Board's
evaluation will result in a completed transaction, or any assurance
as to its outcome or timing. S&W expects that the Board's
evaluation will be completed in the second half of the 2023
calendar year. It does not intend to disclose any
developments related to the process unless and until S&W
executes a definitive agreement for a particular transaction, or
the Board otherwise determines that further disclosure is
appropriate or required.
About S&W Seed Company Founded in 1980, S&W
Seed Company is a global multi-crop, middle-market agricultural
company headquartered in Longmont,
Colorado. S&W's vision is to be the world's preferred
proprietary seed company which supplies a range of forage and
specialty crop products that supports the growing global demand for
animal proteins and healthier consumer diets. S&W is a global
leader in proprietary alfalfa, sorghum, and pasture seeds, with
significant research and development, production and distribution
capabilities. S&W is currently focused on commercializing
stevia products, entering the camelina market and developing
products to address unmet market needs through high-value improved
traits in its crops. more information, please
visit www.swseedco.com.
Safe Harbor Statement This release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended and such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
"Forward-looking statements" describe future expectations, plans,
results, or strategies and are generally preceded by words such as
"anticipates," "believe," "expected," "may," "future," "plans,"
"should" or "will." Forward-looking statements in this release
include, but are not limited to, statements regarding: the
evaluation of potential alternatives to unlock value, expected
timing for the process, the potential value represented by the
Company's international operations, and the types of transactions
that may be identified and/or pursued as part of the Company's
evaluation. You are cautioned that such statements are subject
to a multitude of risks and uncertainties that could cause future
circumstances, events, or results to differ materially from those
projected in the forward-looking statements, including: the risk
that the evaluation process may not result in a completed
transaction within the time period set forth for completing the
evaluation, or at all; the risk that any transaction or strategic
alternative pursued by the Company may not provide the expected
benefits; risks and uncertainties related to the effects of
macroeconomic events, such as uncertain market conditions,
inflation and supply chain disruptions, military actions and armed
conflicts; the risk that our cash assets and access to capital may
not be sufficient to meet our liquidity needs, including our
ability to pay our growers as our payment obligations come due; our
need to comply with the financial covenants included in our loan
agreements, raise additional capital in the future and our ability
to continue as a "going concern"; our business and strategic
initiatives may not achieve the expected results; previously
experienced logistical challenges in shipping and transportation of
our products may become amplified, delaying our ability to
recognize revenue and decreasing our gross margins; and the risks
associated with our ability to successfully optimize and
commercialize our business. These and other risks are identified in
our filings with the Securities and Exchange Commission, including,
without limitation, our Annual Report on Form 10-K for the year
ended June 30, 2022 and in other
filings subsequently made by the Company with the Securities and
Exchange Commission. All forward-looking statements contained in
this press release speak only as of the date on which they were
made and are based on management's assumptions and estimates as of
such date. We do not undertake any obligation to publicly update
any forward-looking statements, whether as a result of the receipt
of new information, the occurrence of future events or
otherwise.
Company Contact:
Betsy Horton , Chief Financial Officer
S&W Seed Company
Phone: (720) 593-3570
www.swseedco.com
Investor Contact:
Robert Blum
Lytham Partners, LLC
Phone: (602) 889-9700
sanw@lythampartners.com
www.lythampartners.com
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SOURCE S&W Seed Company