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UNITED STATES
SECURITIES AND 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 11, 2000
AgriBioTech, Inc.
(Exact name of issuer as specified in its charter)
Nevada 0-19352 85-0325742
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
120 Corporate Park Drive, Henderson, Nevada (89014)
(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 11th 2000 AgriBioTech, Inc. issued the attached press release.
SIGNATURE
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned, thereto duly authorized.
Date: May 16, 2000
AGRIBIOTECH, INC.
By: /s/ William A. Brandt, Jr.
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William A. Brandt, Jr.
Responsible Natural Person
FOR IMMEDIATE RELEASE
Contact:
Bradley Sharp
Development Specialists, Inc.
702-566-2440
AGRIBIOTECH, INC. ANNOUNCES SALE OF ASSETS
HENDERSON, NV, May 8, 2000- AgriBioTech, Inc. ("ABT" or the "Company") today
announced that it has reached an agreement in principle to sell substantially
all of its turfgrass seed assets and Specialty Division creating a value of
approximately $65 million, plus assumption of liabilities. As part of the
transaction, the purchaser is expected to assume the Company's obligations under
contracts with its growers and other contracts. The growers' contracts call for
the Company to purchase existing turfgrass seed inventory in the growers'
possession.
"The sale of these assets represents a major step forward in the
Company's reorganization under Chapter 11," stated Bradley Sharp of Development
Specialists, Inc. ("DSI"), a court-appointed reorganization consultant to the
Company. "We are optimistic that the necessary approvals can be obtained, and
the other conditions to completion of the transaction can be satisfied, within
the next several weeks."
The purchasers are Kenneth R. Budd and J.R. Simplot Company. Mr. Budd
is a former president and chief operating officer of ABT. Completion of the
transaction is subject to Bankruptcy Court and other governmental approvals,
completion of a business and legal due diligence review by the purchaser,
agreement on definitive documents, final approval of the purchaser's board of
directors, and the absence of any material adverse change in the purchased
assets.
"The sale is consistent with the Company's previously announced
strategy of selling its assets in one or more going-concern sales as efficiently
and expeditiously as possible to preserve the value of the bankruptcy estate. As
part of this strategy, the Company is actively pursuing, and is close to
completing, other agreements in principle to sell its forage seed business as
well as other residual assets. Despite the level of interest and the bids
received thus far, Management is doubtful that the sale of the Company's assets
will generate funds sufficient to permit any distribution to the Company's
shareholders," said William A. Brandt, Jr., the Company's bankruptcy
court-appointed responsible person.
On February 15, 2000, the Bankruptcy Court approved Mr. Brandt as the Company's
responsible person and approved the Company's retention of Development
Specialists, Inc. ("DSI") as reorganization consultants. Mr. Brandt is a
principal of DSI.
The Company has been subject to Chapter 11 proceedings since January 25, 2000.
For further information regarding AgriBioTech's bankruptcy case, see the
www.agribiotech.com website and/or the SEC's website (www.sec.gov) filings for
the latest 10-Q.
The foregoing information may include forward-looking statements. Such
statements include, but are not limited to, statements regarding the likelihood
that currently contemplated asset sale transactions will be completed, the
amounts likely to be realized in future sale transactions, and the amount or
likelihood of any distributions from the Company's bankruptcy estate.
Forward-looking statements are subject to various risks and uncertainties,
including but are not limited to (a) the Company's ability to enter into
definitive documents reflecting the agreement in principle, (b) the risk that an
agreed-upon asset sale may not be approved by the Bankruptcy Court or receive
other required governmental approvals, (c) the possibility that any of various
contingencies, including but not limited to purchaser's due diligence review,
will not be satisfied, (d) the Company's ability to sell its forage and other
assets and business at an acceptable price, or at all, (e) the final
determination of the amount of creditor's claims against the Company,
administrative expenses of the bankruptcy, and the proceeds of the sale of the
Company's assets, and (f) other factors as detailed from time to time in the
Company's SEC filings.
ABOUT AGRIBIOTECH, INC.
AgriBioTech, Inc. is a vertically integrated, full-service seed company
specializing in the forage and turfgrass sector, complete with research and
development of proprietary seed varieties, seed processing plants, and a
national and international distribution and sales network.
