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UNITED STATES
SECURITIES EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 28, 1999
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AgriBioTech, Inc.
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(Exact name of issuer as specified in its charter)
Nevada 0-19352 85-0325742
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(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
120 Corporate Park Drive, Henderson, Nevada (89014)
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (702)566-2440
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Item 5. Other Events
On May 28, 1999, AgriBioTech, Inc. ("ABT" or the "Company") announced it has
completed an early redemption of all $23.3 million of its subordinated
convertible debentures ("sub-debt") sold in late December 1998 and early January
1999. The transaction to redeem the debt early will prevent and eliminate a
resetting of the amount of shares of common stock into which this debt can be
converted. The total amount paid in connection with the early redemption was
approximately $27.6 million, including accrued interest. The difference between
the amount paid to redeem the debt and the amount reflected on the Company's
books will be reported as an extraordinary item in ABT's SEC filings and
financial statements.
As previously announced, a significant portion of the cash ABT used for the
early redemption of the "sub-debt" was from internally generated funds available
through its revolving credit facility. The remaining $10.0 million came from a
short-term bridge loan from the Company's Chairman and Chief Executive Officer
(CEO) Richard Budd and members of his family. The unsecured bridge loan carries
an interest rate of prime plus one-half percent. ABT expects to repay the
bridge loan and reduce the amount outstanding under its revolving credit
facility shortly with the proceeds from an issuance of equity securities to an
existing shareholder.
Certain statements in this report are forward-looking statements relating to
the Company's operations that are based on management's current expectations,
estimates, and projections. Words such as "expects," "intends," "plans," and
similar expressions identify such forward-looking statements. These statements
are not guarantees of future performance; actual results could differ
materially. The statement in this report regarding ABT's intention to repay the
bridge loan from the Company's Chairman and CEO shortly with the proceeds from
an issuance of equity securities to an existing shareholder is a forward-looking
statement that involves a number of risks and uncertainties. The risks and
uncertainties associated with this statement include, but are not limited to:
ABT cash flow and collection practices and abilities, management's ability to
manage the Company's cash effectively, successful cost control at ABT, continued
support from the Company's banks, overall financial condition and asset status
of ABT, relationships with and perceptions of potential lenders and investors,
successful placement of ABT equity securities and other factors as detailed from
time to time in the Company's SEC filings.
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SIGNATURES
Pursuant to the requirement of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AGRIBIOTECH, INC.,
(Registrant)
Date: June 1, 1999 By: /s/ Randy Ingram
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Randy Ingram, Co-President and CEO
