Henderson firm expects loss for fiscal year

Tuesday, Sept. 7, 1999 | 11:35 a.m.

AgriBioTech Inc. of Henderson said it anticipates a loss for the fiscal year that ended June 30. The company previously said it anticipates it will be profitable in the current fiscal year.

The turfgrass seed company has had four profitable quarters since the company went public in September 1993.

In a filing with the Securities and Exchange Commission last week, the company said the Chapter 11 bankruptcy filing of a major customer and expenses associated with restructuring its debt would result in a loss in the last fiscal year.

In July, AgriBioTech attempted to reduce its expenses in the wake of the bankruptcy filing by Saginaw, Mich.-based Hechinger Co., operator of the Builders Square hardware stores.

The SEC filing also said the company issued 500,000 shares of its stock to Michael J. McCarthy for $3.90 per share. The issuance of the stock on Aug. 30 pays a $1.9 million debt to McCarthy for intellectual property, the filing says.

In another announcement, the company said it has retained Kalt, Rosen Chase & Co. LLC of San Francisco to plan an investor relations program to increase visibility.

The company is continuing to review long-term debt financing proposals from several companies to provide the capital it needs to carry out a revised business plan.

In early trading today, AgriBioTech stock was down 3 cents to $3.78 a share.