S&W Seed secures new credit line, repurchases stock

LONGMONT — S&W Seed Co. (Nasdaq: SANW) has secured a $25 million credit line from ABL OPCO LLC, a lender that does business as Mountain Ridge Capital, and has repurchased 200,000 shares of its common stock from MFP Partners LP, the Longmont firm’s largest shareholder.

In a related move, MFP provided S&W with a $13 million letter of credit to be used as collateral for the Mountain Ridge credit line. 

This access to financing comes amid a challenging period for S&W, which shuttered its Australia business this fall and reported in November that the company could operate at a $5 million loss for fiscal 2025.

S&W Seed CEO Mark Herrmann said in a statement last month that the loss of its Australia unit will allow the company to focus on its United States operations, led by its “high-margin Double Team sorghum solutions.”

In a statement this week about the new line of credit, S&W chief financial officer Vanessa Baughman said: “S&W has implemented a number of strategic initiatives over the past few months to exclusively focus on its core U.S.-based operations, led by our high margin sorghum trait portfolio with Double Team, while at the same time aligning our cost structure to drive the business toward near-term profitability. I believe today’s announcement is a strong endorsement from both our largest shareholder and new strategic banking partner in the future of S&W and the opportunity it represents going forward. I look forward to the continued execution of our growth and profitability initiatives as we enter calendar 2025.”

As of just after 11 a.m. Tuesday, Dec. 24, S&W’s stock price was trading at $5.60, down nearly 55% since the beginning of 2024.

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