Ag Growth International Enters into Agreement with Canada Revenue Agency Regarding its Conversion Transaction
WINNIPEG, MB, February 25, 2015 – Ag Growth International Inc. (TSX: AFN) ("AGI") announced today that it has entered into an agreement with the Canada Revenue Agency ("CRA") regarding the CRA's objection to the tax consequences of the conversion (the "conversion") of AGI from an income trust structure into a business corporation in June 2009.
The agreement will not give rise to any cash outlay by AGI for taxation years 2009 to 2014, and AGI will provide an update of the agreement's impact on its deferred tax assets and liabilities as part of its management's discussion and analysis accompanying its financial statements for the fourth quarter and year end to be issued on March 13, 2015. The agreement will result in a non-cash charge in the consolidated statement of earnings related to the adjustment of certain tax pools and the write-off of a portion of the Corporation’s deferred tax assets.
Company Profile
Ag Growth International Inc. is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. AGI has eleven manufacturing facilities in Canada, the United States, the United Kingdom and Finland, and distributes its products globally.
Forward-Looking Statements
This press release may contain forward-looking information within the meaning of applicable Canadian securities law ("forward-looking statements") Statements other than statements of historical fact contained in this press release may constitute forward-looking statements including, without limitation, management's expectations, projections, estimates, intentions and beliefs concerning anticipated future events, results, circumstances, economic performance or expectations with respect to the Company, including AGI's business operations, business strategy and financial condition. The forward-looking statements contained herein reflect the internal projections, expectations, future growth, results of operations, performance, business prospects and opportunities of AGI and are based on information currently available to AGI. Actual results and performance may differ materially from results and performance discussed in the forward-looking statements, as they are subject to a number of risks and uncertainties, including but not limited to the risks described in AGI's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com.. Readers should not place undue reliance on such forward-looking statements. These forward-looking statements are subject to change as a result of new information, future events or other circumstances. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in this press release are made as of the date hereof and AGI undertakes no obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless so required by applicable Canadian securities laws.