MINNEAPOLIS, July 11, 2018 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Company") announced today that its wholly-owned subsidiary, Riverland Ag Corp., has acquired 100 percent of the equity of Nature's Organic Grist, LLC, a supplier of organic and ancient grains (including cereal grains, pulses and seeds), milled flours, and feed products. The acquisition will be funded from existing working capital. Cash cost of the acquisition in fiscal 2018-19 is approximately $2.8 million, with the potential for further payments to Nature's Organic Grist's former owner based on the future performance of the business. Nature's Organic Grist will continue to operate under its current name as a subsidiary of Ceres.
"The addition of Nature's Organic Grist broadens Ceres' portfolio of products and services, and reinforces our vision to be the most trusted and valued partner to quality-conscious customers," said Mr. Robert Day, President and Chief Executive Officer at Ceres. "This acquisition is complementary to our existing business activities and will be immediately accretive to Ceres. Natures Organic Grist brings a skill-set needed to be successful in the organic space, while Ceres' infrastructure, farmer relationships and end-user customer-base can be utilized to lower logistical costs and increase access on both ends of the organic supply chain."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of industry experts, Ceres and its subsidiaries originate and provide their global portfolio of customers with North American agricultural commodities & value-added products, industrial products, fertilizer, energy products and reliable supply chain logistics services.
Ceres and its subsidiaries operate six locations: Savage, MN; Duluth, MN; Minneapolis, MN; Shakopee, MN; Northgate, Saskatchewan; and Port Colborne, Ontario, and is headquartered in Minneapolis, MN. Its facilities throughout North America have an aggregate grain and oilseed storage capacity of approximately 30 million bushels and the ability to provide supply chain services for over two million tonnes of fertilizer and energy and industrial products.
At the location in Savage, MN (Savage Riverport LLC, a joint venture with Consolidated Grain and Barge Co. "CGB") Riverland operates the facility and owns a 50% interest. In addition, Ceres has a 25% interest in Stewart Southern Railway Inc., a short-line railway located in southeast Saskatchewan with a range of 130 kilometers, and a 17% interest in Canterra Seed Holdings Ltd, a Canadian-based seed development company.
Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information may include, but is not limited to, statements regarding future operations and results, anticipated business prospects and financial performance of Ceres and its subsidiaries, including the plans, costs, timing and capital for the further development of the Northgate Commodities Logistics Centre, expectations or projections about the future, strategies and goals for growth, expected and future cash flows, costs, planned capital expenditures, regulatory change, general economic political and market conditions anticipated capital projects, construction and completion dates, operating and financial results, critical accounting estimates, the expected financial and operational consequences of future commitments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", "may have implications" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Key assumptions upon which such forward-looking information is based are listed in the "Forward-Looking Information" section of the MD&A for the period ended March 31, 2018. Many such assumptions are based on factors and events that are not within the control of Ceres and there is no assurance 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 weather, politics and governments, changes in environmental and other laws and regulations, competitive factors in agricultural, food processing and feed sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, global and local economic conditions, the ability of Ceres to successfully implement strategic initiatives and whether such strategic initiatives will yield the expected benefits, the ability of Ceres to successfully defend the claim by The Scoular Corporation, the operating performance of the Corporation's assets, the availability and price of commodities and regulatory environment, processes and decisions. 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 or management's estimates or opinions 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: Heidi Christensen Brown, NATIONAL Equicom, (416) 848-1389, email@example.com
Through its network of commodity logistics centers and team of industry experts, Ceres Global Ag Corp. procures and provides North American agricultural commodities & value added products, industrial products, fertilizer, energy products and reliable supply chain logistics services to customers worldwide.Ceres operates six locations, Duluth, MN; Minneapolis, MN; Savage, MN; Shakopee, MN;...