S&W Seed Company Commencing Strategic Alternatives Review Process
S&W Seed Company (Nasdaq: SANW) announced that its Board of Directors is initiating a strategic alternatives review process to enhance shareholder value. The company will explore various options, including a potential sale of the company, merger with a strategic partner, recapitalization, or continuation of its current business plan.
Over the past year, S&W Seed has implemented significant changes, including divesting its Australian subsidiary to focus on US-based sorghum and alfalfa operations. The company's core assets include a high-margin sorghum trait portfolio featuring Double Team and an investment in the VBO Camelina biofuel joint-venture with Shell.
The Board has not established a timeline for the review process and has engaged Rabobank Securities Inc. as financial advisor and Cooley LLP as legal counsel. The company notes that there is no guarantee the review will result in any transaction or strategic outcome.
S&W Seed Company (Nasdaq: SANW) ha annunciato che il suo Consiglio di Amministrazione sta avviando un processo di revisione delle alternative strategiche per migliorare il valore per gli azionisti. L'azienda esplorerà diverse opzioni, inclusa una potenziale vendita della società, fusione con un partner strategico, ricapitalizzazione o la continuazione del piano aziendale attuale.
Nel corso dell'ultimo anno, S&W Seed ha attuato cambiamenti significativi, incluso il disinvestimento della sua filiale australiana per concentrarsi sulle operazioni di sorgo e alfalfa negli Stati Uniti. Gli asset principali dell'azienda includono un portafoglio di tratti di sorgo ad alta marginalità che presenta Double Team e un investimento nella joint venture di biofuel VBO Camelina con Shell.
Il Consiglio non ha stabilito un cronoprogramma per il processo di revisione e ha ingaggiato Rabobank Securities Inc. come consulente finanziario e Cooley LLP come consulente legale. L'azienda sottolinea che non c'è alcuna garanzia che la revisione porterà a una transazione o a un risultato strategico.
S&W Seed Company (Nasdaq: SANW) anunció que su Junta Directiva está iniciando un proceso de revisión de alternativas estratégicas para aumentar el valor para los accionistas. La empresa explorará varias opciones, incluyendo una venta de la empresa, fusión con un socio estratégico, recapitalización o la continuación de su plan de negocio actual.
En el último año, S&W Seed ha implementado cambios significativos, incluyendo la desinversión de su filial australiana para enfocarse en operaciones de sorgo y alfalfa basadas en Estados Unidos. Los activos principales de la empresa incluyen un portafolio de rasgos de sorgo de alta rentabilidad que incluye Double Team y una inversión en la joint venture de biocombustible VBO Camelina con Shell.
La Junta no ha establecido un calendario para el proceso de revisión y ha contratado a Rabobank Securities Inc. como asesor financiero y a Cooley LLP como asesor legal. La empresa señala que no hay garantía de que la revisión resulte en alguna transacción o resultado estratégico.
S&W Seed Company (Nasdaq: SANW)는 이사회가 주주 가치를 높이기 위해 전략적 대안 검토 프로세스를 시작한다고 발표했습니다. 이 회사는 회사의 매각, 전략적 파트너와의 합병, 자본 재조정 또는 현재의 사업 계획 지속 등을 포함한 여러 옵션을 탐색할 것입니다.
지난 해 동안 S&W Seed는 호주 자회사를 매각하고 미국 기반의 수수 및 알팔파 사업에 집중하는 중요한 변화를 구현했습니다. 회사의 핵심 자산에는 더블 팀을 특징으로 하는 고마진 수수 특성 포트폴리오과 셸과의 VBO 카멜리나 바이오 연료 합작 투자에 대한 투자가 포함됩니다.
이사회는 검토 프로세스에 대한 일정은 정하지 않았으며, Rabobank Securities Inc.를 재무 고문으로, Cooley LLP를 법률 고문으로 고용했습니다. 회사는 검토가 어떤 거래나 전략적 결과로 이어질 것이라는 보장은 없다고 언급했습니다.
S&W Seed Company (Nasdaq: SANW) a annoncé que son Conseil d'Administration lance un processus d'examen des alternatives stratégiques pour accroître la valeur pour les actionnaires. L'entreprise explorera diverses options, y compris une vente de l'entreprise, fusion avec un partenaire stratégique, recapitalisation, ou la poursuite de son plan d'affaires actuel.
Au cours de l'année passée, S&W Seed a mis en œuvre des changements significatifs, notamment la cession de sa filiale australienne pour se concentrer sur les opérations de sorgho et d'alfalfa basées aux États-Unis. Les actifs clés de l'entreprise comprennent un portefeuille de traits de sorgho à forte marge mettant en vedette Double Team et un investissement dans le joint-venture de biocarburants VBO Camelina avec Shell.
Le Conseil n'a pas établi de calendrier pour le processus de révision et a engagé Rabobank Securities Inc. comme conseiller financier et Cooley LLP comme conseiller juridique. L'entreprise note qu'il n'y a aucune garantie que la révision aboutisse à une transaction ou à un résultat stratégique.
S&W Seed Company (Nasdaq: SANW) hat angekündigt, dass der Vorstand einen Prozess zur Überprüfung strategischer Alternativen einleitet, um den Aktionärswert zu erhöhen. Das Unternehmen wird verschiedene Optionen prüfen, einschließlich einer Veräußering des Unternehmens, Fusion mit einem strategischen Partner, Rekapitalisierung oder Fortsetzung des aktuellen Geschäftsplans.
Im vergangenen Jahr hat S&W Seed bedeutende Veränderungen umgesetzt, darunter den Verkauf seiner australischen Tochtergesellschaft, um sich auf den US-amerikanischen Markt für Sorghum und Alfalfa zu konzentrieren. Zu den Kernanlagen des Unternehmens gehört ein höhermargen Sorghum-Eigenschaftsportfolio mit Double Team und eine Investition in das VBO Camelina Biokraftstoff-Joint-Venture mit Shell.
Der Vorstand hat keinen Zeitrahmen für den Überprüfungsprozess festgelegt und hat Rabobank Securities Inc. als Finanzberater und Cooley LLP als Rechtsberater engagiert. Das Unternehmen weist darauf hin, dass es keine Garantie gibt, dass die Überprüfung zu einer Transaktion oder strategischen Ergebnis führen wird.
- Strategic review could lead to value-creating transactions like sale or merger
- Successfully divested Australian subsidiary to streamline operations
- Focus on high-margin sorghum trait portfolio
- Strategic partnership with Shell in VBO Camelina biofuel venture
- Uncertainty about the outcome of the strategic review process
- No timeline set for completion of the review
- Potential disruption to business operations during review period
Insights
The engagement of Rabobank Securities suggests serious consideration of M&A possibilities. Given the company's specialized genetics portfolio and established presence in sorghum and alfalfa, potential acquirers could include larger seed companies seeking to expand their trait portfolios or agricultural companies looking to enter the specialty seeds market. The Double Team sorghum technology and Shell partnership add particular value propositions that could command a premium in negotiations.
The VBO Camelina biofuel joint venture with Shell is especially noteworthy as it aligns with the growing sustainable fuels market. This partnership could be particularly attractive to strategic buyers given the increasing demand for renewable fuel feedstocks and Shell's involvement lending credibility to the technology.
The company's streamlined operations following the Australian divestiture, combined with its enhanced focus on high-margin trait technologies, creates a more compelling acquisition target. The timing of this strategic review coincides with increased industry interest in drought-resistant crop genetics and sustainable fuel alternatives, potentially maximizing value for shareholders.
The Company expects to consider a broad range of potential opportunities, including, among others, a sale of the Company, a merger with another strategic partner, a recapitalization or continued execution of the Company's attractive long-term business plan.
Alan Willits, Chairman of S&W Seed, commented: "S&W Seed continues to successfully execute on its long-term plan. Over the last year, S&W Seed has taken decisive actions to strengthen the Company, including by divesting S&W Seed Australia subsidiary and exclusively focusing on its core US-based sorghum and alfalfa operations, led by its high-margin sorghum trait portfolio with Double Team, and its investment in the VBO Camelina biofuel joint-venture with Shell, while aligning its cost structure and strengthening the Company's management and employees. We continue to support all initiatives that optimize shareholder value and will consider the full range of potential strategic alternatives to ensure S&W Seed is best positioned for future success."
There can be no assurance that the review process will result in the Company pursuing any transaction or any other strategic outcome, nor as to the form or timing of any of the foregoing. The Board has not set a timetable for completion of this process and the Company does not intend to disclose further developments unless and until it determines that further disclosure is appropriate or necessary.
The Committee is being advised by Rabobank Securities Inc. as the financial advisor and Cooley LLP as legal counsel.
About S&W Seed Company
Founded in 1980, S&W is a multi-crop, middle-market agricultural company headquartered in Longmont,
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 "may," "future," "plan" or "planned," "will" or "should," "expected," "anticipates," "draft," "eventually" or "projected." Forward-looking statements in this release include, but are not limited to, statements regarding our process to explore and evaluate various strategic alternatives; whether the process will result in a transaction or other strategic outcome; the expected benefits of such transaction or other outcome, if any; the expected benefits of the divestment of our Australian subsidiary and other initiatives; and our success in executing our long-term business plan. 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 we may not consummate a transaction or other strategic outcome; the risk that any transaction or strategic outcome may not provide the anticipated benefits; the risk that our business plan may not be successful and our strategic initiatives may not achieve the expected results; 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, 2024 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:
Mark Herrmann, Chief Executive 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
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