TORONTO, Nov. 1 /CNW/ - Agtech Income Fund (the "Fund") (TSX-V:AGT) is
pleased to announce that it has completed its purchase of the property, plant
and equipment and trade name of Harvest Grain Australia PTY based in Horsham,
Victoria Province in Australia. The Fund paid Australian $2.55 million
(approximately C$2.2 million). The purchase was funded through a C$2.5 million
credit facility to the Fund's operating company Alliance Pulse Processors Inc.
("Alliance") from Farm Credit Canada. The Australian assets are held through
Alliance's newly formed wholly-owned subsidiary, Australia Milling Group PTY.
The assets purchased were owned by a shareholder's group led by Bean
Growers of Australia (BGA) and local producers in the State of Victoria. The
final agreement was concluded at arm's length.
About the Fund
The Fund is a limited purpose open-ended income trust originally created
for the purpose of acquiring all of the voting securities of Agtech Processors
Inc. ("Agtech"), which transaction was completed on March 22, 2005. On
August 2, 2007, the Fund completed the acquisition of Saskcan Pulse Trading
and its subsidiaries in a transaction valued at $23.2 million. The Fund's
operating company, Alliance Pulse Processors Inc., through its operating
divisions Saskcan Pulse Trading, Agtech Processors and its wholly-owned
subsidiary United Pulse Trading Inc. is engaged in the business of sourcing,
processing (splitting, cleaning, sorting and bagging) and selling pulses and
specialty crops, primarily for export markets, with four processing plants in
Saskatchewan, Canada and one processing plant in North Dakota, USA. The units
of the Fund are listed for trading on Tier 2 of the TSX Venture Exchange under
the symbol "AGT.UN".
About Australia Milling Group PTY
Alliance Pulse Processors Inc.'s newest operating company, Australia
Milling Group PTY, has a fully functional processing plant with over 7000MT of
steel silo storage capacity and two cleaning and processing lines for lentils,
faba beans, broad beans and chickpeas, located in the heart of Australia's
pulse producing area of Horsham in the State of Victoria , approximately 300
km from Melbourne.
Global Origin Diversification: Canada, USA and Australia
Following the acquisition of Saskcan Pulse, United Pulse and now the
acquisition in Australia, the Fund will operate six processing plants around
the world with 500,000MT of annual production capacity. The Fund estimates
that the latest acquisition makes it one of the world's largest exporters of
split and value-added lentils, peas and pulses to the food and ingredient
markets globally. Canada is the largest exporter in the world of peas and
lentils, a staple protein food that it consumed by hundreds of millions of
consumers world-wide. Australia and the US are emerging exporters for these
products and are among the five largest exporters of these products in the
"We continue on the path of expanding our operations and global reach
both from a production and marketing standpoint. As a significant player in
the global export of pulses, we need to be present in Australia. This
acquisition gets us into that market immediately," explained Murad Al-Katib,
President and CEO of Alliance Pulse Processors and a Trustee of the Agtech
Certain statements in this press release are forward-looking statements.
The reader is cautioned that assumptions used in the preparation of such
information, although considered reasonable by Agtech at the time or
preparation, may prove to be incorrect.
Actual results achieved during the forecast period will vary from the
information provided herein as a result of numerous known and unknown risks
and uncertainties and other factors, many of which are beyond the control of
the Fund. There is no representation by the Fund that actual results achieved
during the forecast period will be the same in whole or in part as those
forecast. All dollar amounts in this press release are Canadian dollars unless
The TSX Venture Exchange has in no way passed upon the merits of the
proposed transaction and has neither approved nor disapproved the
contents of this press release.
For further information:
For further information: Murad Al-Katib, President and CEO, Saskcan
Pulse Trading, Telephone: (306) 525-4490, Fax: (306) 525-4463, e-mail:
firstname.lastname@example.org, Website: www.saskcan.com