LANGLEY, BC, Feb. 15 /CNW/ - Bevo Agro Inc. (BVO:TSX-Ven.) is pleased to
announce that its wholly owned subsidiary, Bevo Farms Ltd., has negotiated a
new credit facility totalling $24,000,000 with Farm Credit Canada ("FCC").
This facility will replace existing facilities with BMO Bank of Montreal
("BMO") in the aggregate principal sum of $17,000,000, representing all of the
current BMO facilities with the exception of the $2,000,000 operating line
referred to in the following. The FCC facility will also provide funds to pay
out the $5,000,000 Banyan Capital Partners ("Banyan") convertible debenture
which matured in September 2007.
The FCC facility consists of a $2,000,000 loan to be used for general
agricultural purposes, an $11,000,000 term loan amortized over 20 years and an
$11,000,000 term loan amortized over 15 years. All of the loans have a five
BMO Bank of Montreal will continue to provide a $2,000,000 operating loan
facility for day to day operations. The BMO facility will be secured in part
by a $1,000,000 cash deposit provided by Banyan, for which the Company will
pay annual interest of 12%.
Bevo Agro is North America's leading supplier of propagated agricultural
plants, growing and distributing vegetable, flower, berry and other plant
seedlings to North America's growers. Bevo propagates quality seedlings and
plants primarily for wholesale vegetable greenhouse growers, field growers and
nursery operators from its 34 acre production facility.
FCC is Canada's largest provider of business and financial services to
farms and agribusiness, operating out of 100 offices located primarily in
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or the accuracy of this news release
For further information:
For further information: Jack Benne, President Bevo Agro Inc., Phone:
(604) 888-0420, Fax: (604) 888-8048, Email: firstname.lastname@example.org