TORONTO, Nov. 28, 2016 /CNW/ - Ceres Global Ag Corp. (TSX:CRP) ("Ceres") announced today that VN Capital Fund C, LP ("VN") has given notice of its intention to exercise in full the warrants that were issued to it in connection with Ceres' rights offering that closed at the end of 2014. In connection with the exercise, VN will pay to Ceres an aggregate exercise price of C$7.3 million, and in exchange will receive 1,250,000 common shares of Ceres.
Warrants for an additional 833,334 common shares of Ceres were issued in connection with the rights offering and will expire on December 4, 2016, unless exercised.
After giving effect to the anticipated exercise of the warrants by VN, and assuming that none of the remaining warrants are exercised, VN will own approximately 42.96% of the issued and outstanding common shares of Ceres.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Headquartered in Minneapolis, Ceres Global Ag Corp. is focused on two primary businesses: a Grain Storage, Handling and Merchandising unit; and a Commodity Logistics unit.
Ceres operates in two business units, one of which is a grain storage, handling, and merchandising unit anchored by a collection of nine (9) grain storage and handling assets in Minnesota, New York, Saskatchewan and Ontario having aggregate storage capacity of approximately 43 million bushels as at June 30, 2016, including 5.4 million bushels of idle capacity.
Ceres' Commodity Logistics unit is focused on the development of a Commodity Logistics Centre in Northgate, SK. The Northgate Commodities Logistics Centre is a state-of-the-art grain, agriculture services and oilfield supplies transloading site.
Ceres also has a 25% interest in Stewart Southern Railway Inc., a short-line railway with a range of 130 kilometres that operates in south-eastern Saskatchewan, and a 17% interest in Canterra Seeds Holdings, one of Canada's leading seed companies, with a full product portfolio of leading-edge varieties in cereals, pulses, oilseeds, corn, soybeans and specialty crops.
Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. The forward-looking information contained in this news release relates to the anticipated exercise of the warrants by VN, the receipt by Ceres of the aggregate exercise price and the issuance of common shares of Ceres to VN, and is based on receipt by management of a written notice from VN of its intention to exercise the warrants. Forward-looking information is subject to a variety of risks, uncertainties and other factors that could cause actual events or results to differ materially from those anticipated in the forward-looking information. The key assumptions upon which this forward-looking information is based relate to the ability of VN to execute on the exercise of the warrants in a timely manner, and that VN will decide to follow through on its intention to complete such exercise. These assumptions are based on factors and events that are not within the control of Ceres, and there is no assurance that they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, among others, risks related to the ability of VN to fund the exercise price and deliver the original warrant certificate to Ceres in a timely manner. Although Ceres has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results that are not anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward-looking information if circumstances should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.
SOURCE Ceres Global Ag Corp.
For further information: Joe Racanelli, NATIONAL Equicom (416) 586-1943, [email protected]