S&W Seed Co (NASDAQ:SANW), a specialty crop production company, announced on Monday an amended and restated employment agreement with its President and Chief Executive Officer, Mr. Herrmann. The new agreement, which comes into force today, strengthens Mr. Herrmann’s continued leadership and outlines his compensation and benefits.
Under the terms of the updated agreement, Mr. Herrmann will retain his annual base salary of $500,000. Beginning in fiscal year 2025, he will be eligible for a cash bonus with a target of 50% of his base salary, which could go up to 75%, and a restricted stock unit award of a target value of $150,000, rising to a maximum. of $300,000. These stock units will vest quarterly over three years, subject to his continued service with the company.
In addition, every fiscal year Mr. Herrmann is set to receive $300,000 worth of stock options that vest on a similar quarterly basis over three years. The agreement provides for the termination of housing provided by the company in Longmont, Colorado, to Mr. Herrmann until August 31, 2024.
Should Mr. If Herrmann’s employment is terminated without cause or if he resigns for good cause, as defined in his employment agreement, he is entitled to continued base salary for three months. In addition, if he voluntarily retires after reaching age 65, he will benefit from the acceleration and full exercise of all unvested shares from stock options or restricted stock unit awards, with the options remaining vested. exercisable for 12 months after completion.
In other recent news, S&W Seed Company (NASDAQ: ) reported a slight increase in total revenue for the third quarter of fiscal 2024, with earnings reaching $18.3 million, up from $17.7 million in the same quarter last year. This growth is attributed to the successful market penetration of the company’s Double Team sorghum trait technology, which now owns a 10% share of US green sorghum acres.
Despite challenges such as geopolitical disruptions in the Middle East and supply shortages in Australia, S&W maintains its revenue guidance for dual-team sorghum, forecasting growth of between 77% and 115% compared to fiscal 2023. The company announced also strategic moves including the sale of its partnership with Trigall Genetics in Australia and updates on its joint venture Vision Biofuels Oilseeds.
These are among the latest developments for S&W, which is optimistic about Double Team Sorghum’s scalability and 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 the third quarter of 2024, it is focused on achieving positive cash flow in the near future and optimizing operations for profitability. S&W is also focusing on high-margin products such as the glufosinate-resistant Camelina trait, slated for commercial launch in fall 2025.
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