WINNIPEG, MB, October 25, 2018 – Ag Growth International Inc. (TSX: AFN) ("AGI" or the "Company") is pleased to announce that it has closed its previously announced public offering of 1,874,500 common shares (the "Common Shares") at a price of $61.50 per Common Share for gross proceeds of approximately $115 million, which includes the exercise in full of the over-allotment option granted to the Underwriters (as hereinafter defined) for additional gross proceeds of approximately $15 million. A syndicate book run by CIBC Capital Markets and National Bank Financial Inc. and including TD Securities Inc., Scotia Capital Inc., RBC Dominion Securities Inc., Raymond James Ltd., HSBC Securities (Canada) Inc., Cormark Securities Inc. and Laurentian Bank Securities Inc. (collectively, the "Underwriters") acted as underwriters for the offering. The Common Shares are listed for trading on the Toronto Stock Exchange under the symbol "AFN".
AGI intends to use the net proceeds of the Offering to partially repay outstanding indebtedness under its credit facilities, to pursue potential acquisition opportunities and for working capital and general corporate purposes.
This press release is not an offer of Common Shares for sale in the United States. The Common Shares may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended, or an exemption from such registration. The Company has not registered and will not register the Common Shares under the U.S. Securities Act of 1933, as amended. The Company does not intend to engage in a public offering of Common Shares in the United States. This press release shall not constitute an offer to nor shall there be any sale of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful.
AGI is a leading provider of equipment solutions for agriculture bulk commodities including seed, fertilizer, grain, and feed systems with a growing platform in providing equipment and solutions for food processing facilities. AGI has manufacturing facilities in Canada, the United States, the United Kingdom, Brazil, South Africa, France and Italy, and distributes its product globally.
This news release contains forward-looking information within the meaning of applicable securities laws that reflects our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. Forward-looking information may contain such words as “anticipate”, “believe”, “continue”, “could”, “expect”, “intend”, “plan”, “will” or similar expressions suggesting future conditions or events. In particular, this press release includes forward-looking statements relating to the proposed timing of completion of the Offering and the anticipated use of the net proceeds of the Offering. Such forward-looking information is based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, the failure or delay in satisfying any of the conditions to the completion of the Offering. Additional information on these and other factors that could affect AGI's operations, financial results or dividend payments are described under “Risks and Uncertainties” and "Forward-Looking Information" in our most recently filed Management's Discussion and Analysis and Annual Information Form. These factors should be considered carefully, and readers should not place undue reliance on the Company’s forward-looking information. We cannot assure readers that actual results will be consistent with this forward-looking information and we undertake no obligation to update such information except as expressly required by law.