Pioneer will terminate its 2014 agreements and obligations and obtain an exclusive, fully paid-up license for the production and distribution of certain S&W varieties. In addition, pioneer will receive S&W seed inventory with a book value of approximately $25 million under the above contractual terms and will resume certain rights and obligations arising from the producers` production contract. Full terms of the deal were not disclosed. S&W Seed Company and Corteva Agriscience announced that they have entered into a new mutually beneficial alfalfa agreement, which terminates and replaces the December 2014 agreements between S&W and Pioneer Hi-Bred International, Inc. Under the new deal, S&W will receive $45 million in cash upon closing, as well as payments of $25 million for regular appointments that will end in February 2021. Wong summarizes: „In recent years, S& has grown from a pure alfalfa seed company to a fully integrated company for the development, production and distribution of multi-crop seeds with a strong position in the sorghum, sunflower and alfalfa fields. We have reoriented our distribution organization, acquired a network of high-leverage U.S. farm dealers, further increased the efficiency of our production processes and accelerated the development of next-generation technologies. Today`s announcement allows us to continue and perhaps accelerate our strategic transformation. The financial terms of the agreement were tacitly agreed.
„This new agreement, which essentially accelerates cash flow over the next five years of minimum contractual obligations and continues to compensate S&W for pre-licensing certain varieties, significantly enhances S&W`s financial capabilities,“ said Matthew Szot, Chief Financial Officer of S&W Seed Company. „After closing, S&V will have more than $45 million in additional net rolling assets and tangible book value. We look forward to redeploying capital in a prudent manner, consistent with our long-term focus on creating a growing agricultural SME. Before opening a seed bag, you should read, understand and accept the stewardess requirements, including applicable insect resistance requirements, for the biotechnological characteristics expressed in the seeds, as set out in the Cortevascience Agri Technology Use Agreement and the Monsanto Technology/Stewardship Agreement you sign. . . .