FOR IMMEDIATE RELEASE
Contact:
Bradley Sharp
Development Specialists, Inc.
702-566-2440
AGRIBIOTECH, INC. ANNOUNCES TENTATIVE AGREEMENT FOR SALE OF FORAGE ASSETS
HENDERSON, NV, June 7, 2000- AgriBioTech, Inc. ("ABT" or the "Company") today
announced that it has reached an agreement in principle to sell substantially
all of the assets relating to its forage business unit for an estimated $16
million of cash, subject to adjustment at closing. As part of the transaction,
the purchaser is expected to assume the Company's obligations under certain
amended production contracts with its growers and other contracts. This sale,
along with the disposition of the other forage related assets retained by the
company, is expected to create a value of approximately $30 million. The
purchased assets include real property, inventory and intangibles, including
plant varieties and supply agreements. The purchaser is Research Seeds, Inc., a
recognized worldwide leader in the development, production and marketing of
proprietary forage, turf seed and microbial products.
Completion of the transaction is subject to U.S. bankruptcy court and other
governmental approvals, completion of a business and legal due diligence review
by the purchaser, agreement on definitive documents and the absence of any
material adverse change in the purchased assets.
ABT is a seed company specializing in the forage and turfgrass sector. The
transaction is the latest in a series of liquidating sales undertaken as part of
the Company's continuing Chapter 11 bankruptcy proceedings. ABT has been subject
to federal bankruptcy court supervision 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 or the
amounts likely to be realized in future sale transactions. 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 the agreed-upon asset
sale may not be approved by the U.S. and Canadian bankruptcy courts 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, and (d) 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.
