REGINA, May 11, 2016 /CNW/ - Input Capital Corp. ("Input") (TSX Venture: INP) (US: INPCF) is pleased to announce that it has now substantially resolved the largest of the three streaming contracts which were terminated in November 2015.
As a result of management's determined collection efforts related to this streaming contract, the following results have been achieved:
- In late March, Input took titled possession of approximately 2,000 acres of farmland;
- On May 1, a farm equipment auction was held in which approximately 60% of the equipment held as security was auctioned. The auction was very successful, with over 800 bidders registered to bid and gross sales exceeding the expectations of the auctioneer; and
- Late yesterday, the titles to approximately 3,000 acres of additional farmland were transferred to Input.
Input has taken possession of the balance of the equipment and is planning a second auction for June 2016.
The 5,000 acres of farmland now owned by Input have been rented to local farmers for the 2016 growing season. Input plans to market the land for sale after harvest and has already had several inquiries from potential purchasers.
Management expects that the proceeds of the auctions and the planned land sales will result in a complete recovery of Input's capital associated with this streaming contract.
"This resolution proves the strength of Input's security package and realization process," said President & CEO Doug Emsley. "We have always been determined to protect our capital, and these results prove that this works in practice and not just in theory. If a canola stream goes bad, Input's capital remains safe so that it can be recovered and redeployed with other farmers, continuing the growth trajectory of Input's streaming business."
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. Input enters into multi-year canola streaming contracts with canola farmers in western Canada. Pursuant to the streaming contract, Input purchases a fixed portion of the canola produced, at a fixed price, for the duration of the term of the contract. Input is a non-operating farming company with a diversified portfolio of canola streams, all of which produce canola and revenue for Input within a year of being signed. Input plans to grow and diversify its low cost canola production profile through entering into additional canola streaming contracts with farmers across western Canada. Input is focused on farmers with quality production profiles, excellent upside yield potential, and strong management teams.
Forward Looking Statements
This release includes forward-looking statements regarding Input and its business. Such statements are based on the current expectations and views of future events of Input's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Input, including risks regarding the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of Input. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Input undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
SOURCE Input Capital Corp.