S&W Seed Company (NASDAQ:SANW) Q4 2019 Earnings Conference Call - Final Transcript

Sep 18, 2019 • 11:00 am ET

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S&W Seed Company (NASDAQ:SANW) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Analyst
Ben Klieve

couple of years. Would you feel comfortable getting back to that or we're looking at a bit lower kind of -- help us kind of understand what you're thinking about now in light of all the changes that have taken place in your company over the last couple of quarters?

Executive
Mark Wong

Matt, do you we want to do that or you want me to try that?

Executive
Matthew K. Szot

Yeah. No, Mark. I'll take that. And then maybe you chime in.

Executive
Mark Wong

Sure.

Executive
Matthew K. Szot

So Ben, each acquisition is going to have its own unique characteristics, and depending on the asset profile that comes along with each of those acquisitions is going to be a driving factor to how much balance sheet leverage we have. And I will say, at this point in time, we don't have anything drawn on our US lines of credit. We have roughly $30 million of unused availability on our lines. So how much we use? We certainly want to use our balance sheet to the extent possible to pursue these future acquisitions. But again, it's going really be dependent on each individual acquisition that we target.

Analyst
Ben Klieve

Got it.

Executive
Matthew K. Szot

Does that answer your question?

Analyst
Ben Klieve

Yeah, absolutely. I think that does it for me. Thanks to you both. I'll get back in queue.

Operator
Operator

[Operator Instructions] Our next question comes from Roger Miller of Frontier Investments. Please go ahead.

Analyst
Roger Miller

Good morning. I'm glad to be here. I'm long-time investor in the company. And obviously I've seen it change quite rapidly. What are the possibilities for a hemp? With somebody like [Indecipherable]?

Executive
Mark Wong

Yeah. Hemp is a very interesting crop in that it is legal in -- federally legal in the US, and so there is a big push to look at the crop and its possibilities. CBDs, which are the main chemical component, people think are good for pain, for sleep. And so there's a lot of people putting CBDs into lots of different products. Hemp is also a fairly high yielder in terms of tons of cellulose per acre, and so people think maybe it's a substitute for the paper industry or for -- and other things can be made out of hemp fiber.

So right now, the hemp industry is really one that is planting clones, not seed. So you clone little plants, and then growers buy those and plant those. And there hasn't been much work done on the seed part of hemp. So we've got one or two small trials going on where our breeders are looking at the possibilities for hemp. One thing that's very similar is our stevia operations. In stevia, you also plant small plants, you don't plant from seed, and so we have a lot of experience cloning small plants. And so, the stevia guys are also kind of looking at hemp.

But to be fair, Roger, we don't really have a strategy or we would've said something to the markets, to you all. We are interested in hemp. I personally have been involved in hemp