Bioceres Crop Solutions Corp. (NASDAQ: NASDAQ:BIOX), an agricultural technology company, announced today that its subsidiary, Rizobacter Argentina S.A., has successfully closed a $20 million public offering of corporate bonds in Argentina. The bonds, issued in two tranches, will mature in June 2026 with Class A bonds carrying a 5.0% annual interest rate and Class B bonds at 7.5%.
The proceeds from the bond issuance are earmarked for bolstering working capital and extending debt maturities.
Bioceres, headquartered in Rosario, Argentina, specializes in developing solutions aimed at regenerating agricultural ecosystems and increasing crop resilience to climate change. The company's portfolio includes patented technologies for seeds, microbial inputs, and advanced crop nutrition and protection solutions. Additionally, Bioceres is advancing its HB4® program, which focuses on digital solutions for grower decision support and production output traceability.
In line with regulatory requirements, the bonds have not been registered under the U.S. Securities Act of 1933 and, as such, may only be sold under certain conditions that do not necessitate such registration.
This news is based on a recent SEC filing.
In other recent news, Bioceres Crop Solutions reported a 10% decrease in total revenues for its fiscal third quarter of 2024, totaling $84 million. Despite this, the agricultural biotechnology company posted a net income of $9.8 million and an adjusted EBITDA of $21.1 million. The company's financial debt was also reduced to $242.8 million from $250 million the previous year. These recent developments come amidst regulatory approvals in Brazil and anticipated growth in profitability, particularly in its Seed and Integrated Products segment.
Bioceres remains optimistic about future growth, fueled by positive developments in Brazil. These include the first regulatory approval for Burkholderia bio-control solutions and favorable feedback on HB4 soy varieties. The company expects these advancements to drive double-digit growth in profitability for the fourth quarter.
However, Bioceres acknowledged challenges such as a decrease in total revenues and earnings, primarily due to the impact of the Syngenta distribution agreement on the previous year's quarter. Additionally, excessive rains in Argentina have delayed the soy harvest, and the company is experiencing headwinds in the bio-protection market in the US and Brazil. Despite these setbacks, Bioceres maintains its growth trajectory, underpinned by strategic optimism and a focus on expanding product offerings and partnerships.
InvestingPro Insights
Bioceres Crop Solutions Corp.'s strategic financial move to close a $20 million public offering aligns with its impressive gross profit margins, which stand at 38.96% over the last twelve months as of Q3 2024. According to InvestingPro data, the company has a market capitalization of $704.5 million and has shown a revenue growth of 7.13% during the same period. While the company is trading at a high earnings multiple with a P/E ratio of 230, analysts are optimistic about its profitability, forecasting that Bioceres will be profitable this year.
For investors looking to delve deeper into Bioceres' financial health, InvestingPro offers additional insights. There are more InvestingPro Tips available, including an analysis of the company's long-term performance and dividend policy. Readers interested in these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at https://www.investing.com/pro/BIOX. With this code, investors can access a comprehensive suite of tools and data to inform their investment decisions.
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