Brief: Chairman forced to sell stock at discount

AgriBioTech said the sale was forced by a margin call to Johnny Thomas, its chairman and chief executive who sold 901,707 shares. The firm said another manager sold 443,740 shares.

Thomas funded the company's growth by borrowing on margin to exercise all his employee options and warrants. Thomas said he was disappointed to have to forfeit half of his share ownership due to market conditions. He said the company's business fundamentals "are at an all time high."

AgriBioTech, however, faces lawsuits filed by investors disgruntled over the plunge of its stock price from as high as $29.50 in 1997 and 1998. The suits allege AgriBioTech manipulated its financial statements to overstate revenues and earnings -- charges denied by the company.

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