WINNIPEG, July 16, 2019 /CNW/ - Ag Growth International Inc. (TSX: AFN) ("AGI" or the "Company") is pleased to announce it has agreed to make a minority equity investment of US$15M in Farmobile, Inc. ("Farmobile"), with funding expected to occur on July 17, 2019. AGI and Farmobile have also entered into a Strategic Commercial Agreement to expand the existing collaboration between the two companies. AGI has the right to appoint two directors to the Farmobile board of directors as a result of this investment.
Farmobile, headquartered in Leawood, Kansas, is an independent agriculture technology company. Farmobile provides hardware and software services for the real-time collection, organization, analysis, and storage of farm data. The Farmobile PUC IoT device collects and streams second-by-second geo-tagged agronomic and machine data on every pass of the field from farm equipment of most makes and models. This data is converted into standardized Electronic Field Records which can be viewed via desktop or mobile, shared with trusted advisors, and monetized through its digital marketplace, the Farmobile DataStore exchange. The automatically collected data is used as a system of record for as-applied, as-planted and as-harvested data records. The company's revenue is generated from Farmobile PUC subscriptions to farmers, ag retailers and trusted advisors, and data licensing.
"Our investment in Farmobile substantially expands our technology platform and integrates automated data collection seamlessly within our IntelliFarms SureTrack farm management and grain exchange platform," said Tim Close, CEO of AGI. "SureTrack is the only business tool available for farmers that brings together a suite of sensors, from the field to grain bins, to enable complete farm management all integrated with real time field activity data, market leading grain handling, storage and conditioning equipment, and a comprehensive grain exchange that allows farmers to find the best price for their product or to market their product based on the characteristics of their grain. A powerful combination that now also provides a means for our customers to standardize, control and monetize their data, on their own terms. We are very pleased to deepen our relationship with Farmobile as we stay laser focused on delivering market leading solutions for our customers."
AGI provides farm and commercial solutions and systems for storage, handling, structures, processing, and controls in seed, fertilizer, grain, feed, and food. From planning and project management to engineering and manufacturing, AGI supplies the world's food infrastructure.
This press release contains forward-looking statements that reflect our expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company. Forward-looking statements may contain such words as "anticipate", "believe", "continue", "could", "expect", "intend", "plan", "will" or similar expressions suggesting future conditions or events. In particular, the forward-looking statements in this press release include statements relating to our business and strategy, including our expectations with respect to the expected benefits of the Farmobile investment. Such forward-looking statements reflect our current beliefs and are based on information currently available to us, including certain key expectations and assumptions concerning anticipated grain production in our market areas, financial performance, business prospects, strategies, product pricing, regulatory developments, tax laws, the sufficiency of budgeted capital expenditures in carrying out planned activities, currency exchange rates and the cost of materials, labour, services, AGI's ability to achieve the expected benefits of the investment in Farmobile, and the anticipated impact of the investment in Farmobile on AGI's business. Forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking statements, including changes in international, national and local business conditions, weather patterns, crop planting, crop yields, crop conditions, the timing of harvest and conditions during harvest, seasonality, industry cyclicality, volatility of production costs, agricultural commodity prices, the cost and availability of capital, currency exchange rates, competition and the failure to realize some or all of the anticipated benefits of the investment in Farmobile. These risks and uncertainties are described under "Risks and Uncertainties" in our most recently filed MD&A and Annual Information Form. These factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking statements. There can be no assurance that any of the anticipated benefits of the investment in Farmobile will be realized. We cannot assure readers that actual results will be consistent with these forward-looking statements and we undertake no obligation to update such statements except as expressly required by law.
SOURCE Ag Growth International Inc. (AGI)
For further information: Investor Relations, Steve Sommerfeld, 204-489-1855, [email protected]