WINNIPEG, Nov. 16, 2015 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") today provided an update on its sale of substantially all of the assets of the Company's Special Crops Division to The Scoular Company ("the Special Crops Transaction"), which was overwhelmingly approved by shareholders on November 9, 2015, and its intended divestiture of its 84% ownership interest in Pacific Coast Canola ("PCC") ("the PCC Transaction").
The Company is targeting to complete both the Special Crops and PCC Transactions within the next 10 days.
Further information regarding the Special Crops Transaction and its anticipated effects on Legumex Walker are contained in the Management Information Circular dated October 12, 2015 which is available on www.sedar.com. Readers are cautioned that there is risk that the amount of working capital or payment in respect thereof pursuant to the Special Crops Transaction will be less than as at September 30, 2015 or otherwise less than expected, resulting in the transaction value being less than anticipated, and a risk that the amount available for distribution to shareholders will be less than expected as a result of unforeseen liabilities.
The Company also reported that it has filed its Financial Statements and Management's Discussion and Analysis ("MD&A") for the period ended September 30, 2015 on SEDAR (www.sedar.com) and posted the filings on the Company's website at www.legumexwalker.com in the "Investors" section. Revenue, gross profit and earnings were negatively impacted in the quarter by the pending process for the sale of the Special Crops Division and divestiture of the Company's interest in PCC. For the period ended and as at September 30, 2015, the Company experienced net losses, was in a net deficit position, and was in violation of certain of its lending covenants. Certain lenders have not provided forbearance on these covenant breaches and thus reserve the right to demand repayment of the related borrowings.
About Legumex Walker Inc.
LWI is a growth-oriented processor and merchandiser of pulses and other special crops, and with the completion of the PCC canola seed processing facility in Washington State, canola products. The Company derives its revenue from sourcing, processing, marketing and distributing special crops, canola products and associated healthy, specialty food ingredients to a global customer base. The Company operates processing facilities in the Canadian Prairies, American Midwest, the Pacific Northwest, and China.
Cautionary Note on Forward-looking Statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws which may include, but is not limited to, statements relating to the Company's sale of its Special Crops Division and divestiture of its interest in PCC. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including the risk that the sale of the Special Crops Division and divestiture of its interest in PCC will not be completed within the time frame contemplated or on terms previously announced and the risk that the Company and PCC will not be in compliance with the terms of its credit facilities and related forbearances, the risk that the net proceeds of the sale of the Special Crops Division will be less than previously disclosed, and the risk that notwithstanding the fact that the Company will not realize any proceeds from the divestiture of its interest in PCC, the Company or its subsidiaries may incur costs and obligations in respect of such divestiture, as well as those factors referred to in the section entitled "Risk Factors" in the Company's Management Information Circular dated October 12, 20115 as amended by the Addendum dated October 26, 2015, in the Management's Discussion and Analysis for the period ended September 30, 2015 and in the Annual Information Form dated March 31, 2015 which are available on SEDAR at www.sedar.com and should be reviewed in conjunction with this press release. The Company's expectation with respect to the sale of the Special Crops Division and divestiture of its interest in PCC assume that the conditions to the sale of the Special Crops Division and divestiture of its interest in PCC will be satisfied or waived by the anticipated closing date and the Company and PCC's lenders will continue to forbear in respect of the enforcement of the credit facilities. Although the Company 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 statements. Although the Company believes the assumptions inherent in forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this press release. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except in accordance with applicable securities laws.
SOURCE Legumex Walker Inc.
For further information: Lauren Moran, Manager, Investor Relations, email@example.com, (425) 250-1498; Lawrence Chamberlain, NATIONAL Equicom, firstname.lastname@example.org, (416) 848-1457