S&W Seed Co CEO secures amended employment terms By Investing.com

S&W Seed Co (NASDAQ:SANW), a company focused on agricultural crop production, has announced an amended and restated employment agreement with its President and CEO, Mr. Herrmann. The new agreement, effective from today, secures Mr. Herrmann’s continued leadership and outlines his compensation and benefits.

Under the terms of the updated agreement, Mr. Herrmann will continue to receive an annual base salary of $500,000. From fiscal year 2025, he will be eligible for a cash bonus, with a target of 50% of his base salary, which can increase to 75%. Additionally, he will receive a restricted stock unit award with a target value of $150,000, which can rise to a maximum of $300,000. These stock units will vest quarterly over three years, subject to his continued service with the company.

Each fiscal year, Mr. Herrmann will also receive stock options valued at $300,000, vesting on a similar quarterly schedule over three years. The agreement also states that the company-provided housing in Longmont, Colorado, for Mr. Herrmann will cease by August 31, 2024.

In the event of Mr. Herrmann’s employment ending without cause or if he resigns for a good reason, as defined in the employment agreement, he will receive a continuation of his base salary for three months. If he voluntarily retires after reaching the age of 65, he will benefit from the full acceleration and exercisability of all unvested shares from stock options or restricted stock unit awards, with the options remaining exercisable for 12 months post-termination.

In other recent news, S&W Seed Company reported a slight increase in total revenue for the third quarter of fiscal year 2024, with earnings reaching $18.3 million, up from $17.7 million in the same quarter of the previous year. This growth is attributed to the successful market penetration of the company’s Double Team sorghum trait technology, which now holds a 10% share of green sorghum acres in the U.S.

Despite challenges such as geopolitical disruptions in the Middle East and supply shortages in Australia, S&W maintains its revenue guidance for the Double Team sorghum, projecting growth between 77% and 115% compared to fiscal 2023. The company also announced strategic moves including the sale of its partnership with Trigall Genetics in Australia and updates on its Vision Biofuels Oilseeds joint venture.

S&W is optimistic about the scalability of Double Team sorghum and its future revenue potential. The company aims to capture a 25% market share in sorghum traits by 2027 and plans to introduce new traits in the coming year.

While the company reported a negative adjusted EBITDA of $1.2 million for Q3 2024, it is focused on achieving positive cash flow in the near future and optimizing operations for profitability. S&W is also concentrating on high-margin products like the glufosinate-resistant Camelina trait, slated for commercial launch in fall 2025.

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