Sprott Resource Corp. Announces Acquisition of Beretta Farms Inc. by Subsidiary One Earth Farms Corp.
TORONTO, Feb. 19, 2013 /CNW/ - (TSX: SCP) - Sprott Resource Corp. ("SRC" or the "Company") (TSX: SCP) is pleased to announce that its subsidiary One Earth Farms Corp. ("One Earth Farms") has acquired Toronto based Beretta Farms Inc. ("Beretta Farms"), a purveyor of hormone free and antibiotic free natural and organic branded meat products in Ontario and British Columbia.
Beretta Farms was founded 20 years ago by Mike and Cynthia Beretta who, together with Elvio DelZotto their partner for the last 10 years, have grown the Beretta natural and organic product range into a market leading brand of fresh beef, poultry, deli products and meal solutions in the greater Toronto and Vancouver markets. Beretta Farms products are available to consumers through selected national grocery chains, leading natural and organic retailers, direct home delivery, and a specialty catering operation that provides meals to professional athletes and corporate clients based around the Beretta product line. In connection with the transaction, Mike Beretta will join the executive committee of One Earth Farms as the Chief Operating Officer.
Commenting on the transaction, CEO for One Earth Farms, Larry Ruud said, "I am pleased to welcome Beretta Farms to the One Earth Farms family. Mike and Cynthia Beretta are market visionaries with a passion for farming and the marketing of natural and organic meat products. The Beretta Farms supply chain and consumer brands perfectly complement the One Earth Farms source of beef from our more than 17,000 animal herd of top quality natural and organic cattle. With Mike and Cynthia remaining actively involved in the day to day operation of the business, this combination gives One Earth Farms an integrated business model and broadens our reach from the farm to the end consumer where there is increasing interest in naturally raised meats, food traceability and best practices in animal care."
Mike Beretta added, "Cynthia and I are delighted that we can continue the growth and evolution of our business through this partnership with One Earth Farms. The fit between the Beretta brand, our customer base of prestigious retailers and the organic and natural cattle supply of One Earth Farms make this joint entity an ideal platform for growth. "
This transaction is the first instance of One Earth Farms' strategy of vertical integration and branded food products which it is expected will allow the company to meet the needs of retailers and consumers, while generating increased margins from an integrated supply chain.
After giving effect to the consideration of cash and common shares in One Earth Farms paid to the vendors of Beretta Farms, SRC's basic ownership in One Earth Farms will be approximately 54.3%.
About One Earth Farms Corp.
One Earth Farms is a Canadian based agri-food and consumer products business dedicated to delivering farm to fork protein products from its cattle and crop businesses for consumers who are interested in their health and wellbeing.
One Earth Farms operates a series of cattle and grain/oil-seed farms across the prairie provinces of Canada to support the One Earth Farms' goal of ensuring absolute food traceability from the farm to the consumer's fork.
One Earth Farms offers natural and organic products in fresh meat proteins, meal solutions, snack and specialty prepared meals directed towards high performance athletes. The One Earth Farms products are sold under the brand names 'Beretta', 'Last Rep' and 'Protein Puck' through home delivery, fitness establishments, key national chain stores and select regional chains and independent retailers predominantly in the Ontario/GTA and Vancouver regions.
About Sprott Resource Corp.
SRC is a Canadian-based company, the primary purpose of which is to invest and operate in natural resources. Through acquisitions, joint ventures and other investments, SRC seeks to provide its shareholders with exposure to the natural resource sector for the purposes of capital appreciation and real wealth preservation. SRC is well positioned to draw upon the considerable experience and expertise of both its Board of Directors and Sprott Consulting LP (SCLP), of which Sprott Inc. is the sole limited partner. Pursuant to a management services agreement between SCLP and SRC, SCLP provides day-to-day business management for SRC as well as other management and administrative services. SRC invests and operates through Sprott Resource Partnership (SRP), a partnership between SRC and Sprott Resource Consulting Limited Partnership, an affiliate of SCLP which is the managing partner of SRP.
Forward-looking Information and Statements
This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "remain", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to: (i) SRC's basic ownership in One Earth Farms following completion of the acquisition; (ii) the future growth and evolution of Beretta Farms; (iii) the ability of One Earth Farms to capitalize on increasing consumer interest in naturally raised meats, food traceability and best practices in animal care; (iv) the continued active involvement of Mike and Cynthia Beretta with Beretta Farms; (v) Mike Beretta joining the executive committee of One Earth Farms as the Chief Operating Officer; and (vi) One Earth Farms' strategy of vertical integration and branded food products and the expectation that such strategy will allow One Earth Farms to meet the needs of retailers and consumers, while generating increased margins from an integrated supply chain. Forward-looking information or statements are based on a number of expectations or assumptions which have been used to develop such information and statements but which may prove to be incorrect. Although SRC believes the expectations and assumptions reflected in such forward-looking information and statements are reasonable, undue reliance should not be placed on forward-looking information and statements because SRC can give no assurance that such expectations and assumptions will prove to be correct. The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statements, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors, which may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements, including, but not limited to: (i) uneconomic conditions, operational issues or a change in plans or strategy by One Earth Farms or Beretta Farms; (ii) changes to market demands; (iii) changes to the Beretta Farms supply chain and consumer brands; (iv) changes to One Earth Farms cattle supply; and (v) those risks listed under the heading "Risk Factors" in SRC's annual information form dated March 27, 2012. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking information and statements prove incorrect, actual results, performance or achievements could vary materially from those expressed or implied by the forward-looking information and statements contained in this release.
The forward-looking information and statements contained in this news release speak only as of the date of this news release, and SRC does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be expressly required by applicable securities laws.
SOURCE: Sprott Resource Corp.For further information:
Chief Financial Officer
Sprott Resource Corp.
200 Bay Street, Suite 2750
Tel: (416) 977-7333
Fax: (416) 977-9555