S&W Seed, Corteva Agriscience in New Alfalfa Agreement
May 23 2019 - 8:38AM
Dow Jones News
By Chris Wack
S&W Seed Co. (SANW) and Corteva Agriscience, a division of
DowDuPont (DWDP), said Thursday that they have entered into a new
alfalfa agreement which terminates and replaces a December 2014
agreement with Pioneer Hi-Bred International.
In a release, the companies said as part of the new agreement,
S&W will receive $45 million in cash at closing plus $25
million in payments over regularly scheduled dates concluding in
February 2021.
Pioneer will exit its 2014 agreements and related obligations
and receive a fully pre-paid, exclusive license to produce and
distribute certain S&W-owned varieties. In addition, as part of
the agreement terms above, Pioneer will receive seed inventory from
S&W with a book value of $25 million and assume certain grower
production contract rights and obligations.
S&W will retain ownership of all assets originally acquired
in the December 2014 asset purchase transaction between S&W and
Pioneer, including alfalfa varieties and germplasm, research and
development capabilities, and production facilities.
Shares of S&W were up 44% to $3.60 premarket.
Write to Chris Wack at chris.wack@wsj.com
(END) Dow Jones Newswires
May 23, 2019 08:23 ET (12:23 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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