Ceres Global Ag Corporation Announces Agreement to Sell its Manitowoc Grain Storage Facility
TORONTO, March 20, 2014 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the "Company") (TSX: CRP) today announced that its 100% owned subsidiary, Riverland Ag Corp ("Riverland"), has entered into an agreement to sell its Manitowoc, Wisconsin grain storage facility to Briess Malt and Ingredients Company of Chilton, Wisconsin. The transaction is expected to close before the end of Ceres' next quarter.
"This is a key milestone in our plan to transform Riverland into an active grain trading and merchandising company, while optimizing Riverland's grain elevator capacity through selective asset sales," said Michael Detlefsen, President and CEO of Ceres. "It is also a critical step in re-allocating capital to fund the Northgate Project."
Gross proceeds from the sale of the Manitowoc facility will be $6.2 million. Under the terms of the sale, Ceres, through Riverland, will lease back from Briess one million bushels of storage capacity at Manitowoc for a three-year term.
"Riverland's strategic partnership with Briess Industries is further enhanced with the sale of Manitowoc and Riverland will continue to serve its Wisconsin & Illinois grain customers from leased space at the facility," said Craig Reiners, President and CEO of Riverland Ag.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Ceres Global Ag Corp. is a Toronto-based agriculture and commodity logistics holding company with two main investment areas: a Grain Storage, Handling and Merchandising unit, anchored by its 100% ownership of Riverland Ag Corp.; and a Commodity Logistics unit, containing its 25% interest in Stewart Southern Railway Inc. and its development of the Northgate, SK Commodity Logistics Hub. Riverland Ag Corp. is a collection of ten (10) grain storage and handling assets in Minnesota, New York, Wisconsin and Ontario having aggregate storage capacity of approximately 51 million bushels. Riverland Ag also manages two (2) facilities in Wyoming on behalf of its customer-owner. The Stewart Southern Railway Inc. is a 130-km long short-line railway that operates in Southeastern Saskatchewan. The Northgate Commodity Logistics Hub is a $90 million grain, oil and oilfield supplies transloading site being developed in conjunction with Riverland Ag and several potential energy company partners, connected to the Burlington Northern Santa Fe Railroad and expected to open in the Summer of 2014. Ceres common shares trade on the Toronto Stock Exchange under the symbol "CRP".
Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information may include, but is not limited to, statements regarding future operations and results, anticipated business prospects and financial performance of Ceres and its subsidiaries, expectations or projections about the future, strategies and goals for growth, expected and future cash flows, costs, planned capital expenditures, anticipated capital projects, construction and completion dates, operating and financial results, critical accounting estimates and the expected financial and operational consequences of future commitments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Key assumptions upon which such forward-looking information is based are listed in the "Forward-Looking Information" section of the interim MD&A for the quarter ended September 30, 2013. Many such assumptions are based on factors and events that are not within the control of Ceres and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, among others, risks related to weather, politics and governments, changes in environmental and other laws and regulations, competitive factors in agricultural, food processing and feed sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, global and local economic conditions, the ability of Ceres to successfully implement strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Corporation's assets, the availability and price of commodities and regulatory environment, processes and decisions. Although Ceres has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results that are not anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
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Ceres Global Ag Corp.
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