S&W Seed to delist from Nasdaq amid financial challenges

Published 14/07/2025, 21:38
S&W Seed to delist from Nasdaq amid financial challenges

LONGMONT, Colorado - S&W Seed Company (NASDAQ:SANW) announced today its board has approved plans to voluntarily delist its common stock from The Nasdaq Capital Market and deregister with the Securities and Exchange Commission.

The agricultural company intends to file a Form 25 with the SEC around July 24, with delisting expected to become effective 10 days later. S&W plans to file a Form 15 around August 4 to suspend its reporting obligations under the Exchange Act, with deregistration becoming effective 90 days after the Form 25 filing.

The board’s decision follows consideration of several factors, including the company’s likely future non-compliance with Nasdaq’s continued listing requirements and the costs associated with maintaining SEC reporting obligations. The company cited its previously disclosed events of default under certain credit facilities and employee terminations announced on June 23 as contributing factors. InvestingPro analysis reveals the company operates with a significant debt burden of $23.06 million and negative EBITDA of -$11.17 million, highlighting its financial challenges.

Following delisting, S&W’s common stock may be eligible for quotation on the Pink Open Market operated by OTC Markets Group if a market maker sponsors the security, though the company provided no assurances that a trading market will exist in the future.

S&W Seed Company, founded in 1980, describes itself as a global multi-crop, middle-market agricultural company headquartered in Longmont, Colorado.

The announcement was made in a press release statement issued by the company.

In other recent news, S&W Seed Company reported a slight revenue increase for Q3 2025, with figures rising to $9.5 million from $9.4 million the previous year. The company’s gross profit margin improved significantly to 37.7%, up from 24.6%, and adjusted EBITDA turned positive for the first time in years at $244,000. However, S&W Seed revised its full-year revenue guidance downward to a range of $29-31 million from the previous estimate of $34.5-38 million. In a major development, the company plans to voluntarily delist its common stock from The Nasdaq Capital Market, citing high costs and regulatory burdens. This decision follows financial challenges, including defaults under certain credit facilities and the termination of non-essential employees. Additionally, S&W Seed recently replaced its CEO, appointing Vanessa Baughman as Interim CEO after terminating Mark Herrmann. The company also secured new financing arrangements, amending its credit facility with ABL OPCO LLC to cover essential expenses. These developments reflect ongoing strategic uncertainties and efforts to address liquidity challenges.

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