S&W Seed Signs Deals For $31.7 Mln Financing To Complete Acquisition

(RTTNews) - S&W Seed Co. (SANW) said it has entered into definitive agreements with institutional and accredited investors for a private placement of convertible debt with warrants and a private placement of common stock. The company plans to raise a total of $31.7 million to complete the purchase of DuPont Pioneer's alfalfa research and production business.

S&W Seed expects the private placements and the acquisition to close simultaneously on December 31, 2014.

In the private placement of convertible debt with warrants, the company will issue $27.0 million of secured convertible debentures. The debentures are convertible at a conversion price of $5.00 per share, bear interest at 8 percent per annum, and will mature in 36 months from closing.

The debenture holders will also receive warrants to purchase 2.7 million shares of common stock at an exercise price of $5.00. The warrants will expire in 5.5 years.

In the private placement of common stock, S&W Seed will issue to one institutional investor, MFP Partners, LP, 1.294 million shares of its common stock at a purchase price of $3.60 per share for gross proceeds of about $4.7 million. The company added that no warrants will be issued in connection with the common stock placement.