TORONTO, June 3 /CNW/ - Alliance Grain Traders Income Fund (the "Fund")
(TSX-V:AGT.UN) is pleased to announce that its operating company Alliance
Pulse Processors Inc. ("Alliance") has entered into a letter of intent (the
"Letter of Intent") for the acquisition of Pulse Depot ("Pulse Depot"), a
leading pulse and special crops processor located in Rosetown, Saskatchewan.
The acquisition may be structured either as a purchase of all of the
issued and outstanding shares of Pulse Depot or a purchase of all of the
business and assets of Pulse Depot, as the shareholders of Pulse Depot may
determine. The purchase price may be paid in units of the Fund or in cash or
any combination thereof, as the shareholders of Pulse Depot may decide. The
proposed financial terms of the transaction cannot be disclosed until formal
acquisition agreements are entered into, due to a confidentiality agreement
between the parties. Completion of the transaction will be subject to a number
of conditions, including the receipt of all necessary regulatory, stock
exchange and unitholder approvals and the completion of satisfactory due
diligence reviews, in addition to customary closing conditions. The
transaction was negotiated at arm's length and is scheduled to close on or
about August 1, 2008.
There can be no assurance that the transaction will be completed as
proposed or at all. The Fund expects to incur legal, accounting, financial
advisory and regulatory costs in connection with the transaction. The Fund
will be liable for these costs even if the transaction is not completed.
"This acquisition will further solidify the Fund's position in a key
growing region for pulses in Saskatchewan," explained Murad Al-Katib,
President and CEO of Alliance and Chairman of the Board of Trustees of the
Fund. "Rosetown and the surrounding area is emerging as a growth area for both
red and green lentils. Pulse Depot is well-located to capitalize on rail
freight options with Canadian National Railways, which is expected to make
more transport capacity available to the Fund."
About Pulse Depot
Pulse Depot, a private Saskatchewan company, owns and operates a pulse
and special crops processing facility in Rosetown, Saskatchewan. Its business
is currently focused on lentils, canary seed, peas and chickpeas. Pulse
Depot's plant is one of the two pulse processing plants in Rosetown, the other
plant being already owned by the Fund through Alliance's Saskcan Rosetown
About the Fund
The Fund is an income trust which derives its income from the operations
of its operating subsidiary, Alliance. Alliance is engaged in the business of
sourcing and processing (cleaning, splitting, sorting and bagging) specialty
crops, primarily for export markets. The Fund's companies in Canada, U.S. and
Australia handle the full range of pulses and specialty crops including
lentils, peas, chickpeas, beans and canary seed through six processing plants.
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 the Fund at the time or
preparation, may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Fund (including its operating subsidiaries) to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such risks and
uncertainties include, among others, the actual results of harvests,
fluctuations in the price of lentils and other crops, failure of plant,
equipment or processes to operate as anticipated, accidents, or labour
disputes, risks relating to the integration of acquisitions or to
international operations, as well as those factors referred to in the section
entitled "Risk Factors" in the prospectus of the Fund dated December 30, 2004
which is available on SEDAR at www.sedar.com, and which should be reviewed in
conjunction with this document. Although the Fund has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Murad Al-Katib, Chairman of the Board of
Trustees, Alliance Grain Traders Income Fund, President and CEO, Alliance
Pulse Processors, Tel: (306) 525-4490, Email: email@example.com