AGI Provides Update On The Progress Of Product Transfer Growth Initiatives

Winnipeg, MB, February 6, 2024 – Ag Growth International Inc. (TSX: AFN) (“AGI”, “we”, “our”, or the “Company”) is pleased to provide an update on the progress of several concurrent product transfer growth initiatives underway across the organization.

To-date, total orders [1] received that were enabled by product transfer activities exceeds $55 million. A minority of the total orders received to-date will be reflected in the Company’s 2023 revenue figures with the majority of product transfer-related revenue recognition for orders received to-date expected to materialize in 2024. Quoting and pipeline activity is ongoing across all product transfers and would represent further incremental contribution above and beyond the orders received to-date.

“Product transfers are a key element of our profitable organic growth strategy,” commented Paul Householder, President & CEO of AGI. “By taking highly successful products in one region and transferring the sales-through-to-manufacturing knowledge to other attractive regional markets, we unlock meaningful growth opportunities by leveraging internal capabilities that require minimal incremental capital investment or product development costs. We are in routine contact with our customers to understand their needs which enables us to identify growth opportunities that product transfers address. With many initiatives now moving past the ramp-up phase and into full commercialization, we are seeing initial orders materialize, helping to accelerate overall revenue generation potential entering 2024.”

The Company has updates to several specific product transfers initiated in 2023, including:

• Portable grain handling equipment to India: With production capability established and initial products field tested, we have received our first orders from a leading Australian equipment dealer.
  
  
• Grain storage bins to India: With production capability established, we have attracted several orders including a significant order from a large customer for supply across seven sites. Following this order, we see potential to secure further work with this customer across additional sites as a part of their broader growth strategy.
  
  
• Fertilizer equipment to EMEA: With production capability of several key components of fertilizer processing equipment transferred to our Italian facilities, the team has secured multiple project wins from customers across the region, including notable success in Africa.
  
  
• Fertilizer equipment to Brazil: With production capability of several key pieces of fertilizer processing equipment completed, the team has secured several project wins including a significant initial order from a global leader in the fertilizer production industry.
  
  
• Light duty grain handling equipment to North America: Low-capacity grain handling equipment that’s competitively priced and suitable for the North American farm market was first developed in Brazil and recently transferred to our North American facilities. Initial North American orders have been received, supported by robust ongoing quoting activity.

“We look forward to building on our early successes and further expanding our product transfer activities,” added Householder. “The tremendous collaboration and efforts of our teams around the world, fundamental to our product transfer initiative, is a clear example of the powerful One AGI culture we are embedding across the organization.”

Company Profile
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its product worldwide.

For More Information Contact:
Andrew Jacklin
Director, Investor Relations
+1-437-335-1630
investor-relations@aggrowth.com

[1] Supplementary financial measure. See "Non-IFRS and Other Financial Measures".