REGINA, Nov. 12, 2015 /CNW/ - Input Capital Corp. ("Input") (TSX Venture: INP) (US: INPCF) announces a status update related to its portfolio of canola streaming contracts.
Input is taking steps to terminate three streaming contracts in Saskatchewan and enforce the security granted in conjunction with these contracts.
As this time, Input believes it will fully recover its investment in these three contracts through the enforcement of security. Once recovered, the funds will be available for redeployment in order to replace the cancelled tonnes. The capital value of the three contracts in question is approximately $18.4 million, compared with Input's security position of approximately $24.5 million.
As a result of the above, Input will reduce the number of active streams in its portfolio from 79 to 76 streams and is reducing guidance on the number of projected canola streaming tonnes to be sold in FY2016 from 80,000 tonnes to 65,000 tonnes.
President and CEO Doug Emsley stated: "This is a bump in the road for Input, but a small one. Most of the impact of this announcement is on tonnes originally expected to be received this fiscal year, with little impact on future years. While it is never positive to have to cancel a contract, I feel it is the best way, under these circumstances, to protect our shareholders' capital. The remaining 76 active streams in our portfolio are in good standing, and our prime deployment season is ramping up."
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. Input has multi-year canola streams with farmers located across Alberta, Saskatchewan and Manitoba.
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.