WINNIPEG, March 16, 2015 /CNW/ - Legumex Walker Inc. (TSX: LWP) (the "Company") announced today that its Board of Directors (the "Board") has initiated a process to identify and consider strategic and financial alternatives available to the Company with the ultimate goal of maximizing shareholder value. The Board and management of the Company believe the share price has not been reflective of the fundamental value inherent in the Company and the Board has determined that it is timely to review the Company's alternatives in light of its strategic shift to the high-value specialty food ingredient market. The Company has established a Special Committee composed of independent directors to oversee the strategic review process. Strategic and financial alternatives may include, but are not limited to a strategic financing, merger or other business combination, sale of the Company or a portion of the Company's business or assets or any combination thereof, as well as the continued execution of its business plan.
"Our platform is truly unique, with significant strategic value, and we believe there are potential opportunities to crystallize significant value for shareholders. We have received inquiries from a number of qualified parties that are interested in exploring various transactions with us in certain of our markets, including the specialty food ingredient market, and we expect that this process will unlock this value and allow the Company to fully capitalize on these opportunities," said Bruce Scherr, Chairman of the Board.
Joel Horn, President and Chief Executive Officer, stated, "As I first said in October of last year, we are aggressively pursuing opportunities in specialty processing. We have already announced expanding our high-oleic Omega-9 canola oil with Dow AgroSciences Canada and our non-GMO canola oil and meal programs with The Scoular Company. Additional higher-margin products that we are discussing with potential partners include those derived from both canola and special crops, which would drive growth and profitability within both of our operating segments."
Mr. Scherr will be chairing the Special Committee of the Board. Altacorp Capital Inc. ("Altacorp") and Borden Ladner Gervais ("BLG"), the Company's financial and legal advisors, respectively, are assisting the Special Committee in a comprehensive analysis of potential alternative transactions.
A virtual data room will be established and made available starting at the end of March to qualified parties upon execution of a standard non-disclosure agreement. Parties interested in investigating possible opportunities with the Company may contact AltaCorp directly by phone (647) 776-8230 or by emailing [email protected].
Although the Company has initiated a strategic review process, there is no certainty that any transaction or alternative will be undertaken. The Company has not set a definitive schedule to complete its evaluation and, notwithstanding the above-mentioned alternatives, no decision on any particular alternative has been reached at this time. The Company does not intend to make further announcements or disclose developments with respect to this process unless the evaluation has been completed and the Board has approved a definitive transaction and the Company has entered into a definitive agreement or unless otherwise required by law or regulation or disclosure of which is deemed appropriate.
The Company also announced that Rosemary Brisson has accepted the position of Chief Financial Officer. The Company conducted a thorough search process with an external recruiting firm, and after considering various highly-qualified candidates, decided Ms. Brisson, the Company's Corporate Controller for the past two years, was most qualified for the position. "I am excited to have Rosemary join our C-Suite team," said Mr. Horn, "Her knowledge, experience, rigor and discipline are exactly what we need at this point in our Company's growth."
The Company also announced the resignation of Martin Thrasher and Robert Beutel from its Board of Directors, and thanks them for their diligent service to the Company and its shareholders.
About Legumex Walker Inc.
Legumex Walker is a growth-oriented processor and merchandiser of food and feed ingredients composed and derived from special crops (sunflower seeds and kernels, flax and canary seed), pulses (split and whole lentils and peas, beans and chickpeas) and expeller-press canola products. The Company is one of the largest processors of special crops and pulses in Canada. Legumex Walker has 15 processing facilities strategically located in key growing regions in the Canadian Prairie Provinces, the American Midwest and China; a global sales, logistics and distribution platform; and access to multimodal transportation capabilities. In addition, the Company has an 84 percent interest in Pacific Coast Canola, LLC, which operates the largest commercial-scale canola oilseed processing facility west of the Rocky Mountains.
Cautionary Note on Forward-looking Statements
This press release contains "forward-looking information" within the meaning of Canadian securities laws which may include, but is not limited to, statements relating to expectations, intentions and plans contained in this press release that are not historical fact, including those relating to strategic alternatives and value maximization. When used in this press release, the words "anticipate", "expect", "will", "may", and similar expressions generally identify forward-looking statements. Such forward-looking information reflects the Company's views with respect to future events and is subject to risks, uncertainties and assumptions, including the risk that no strategic transaction will be undertaken by the Company and that even if it does that the Company will be unable to realize any increase in value. The Company does not undertake to update forward-looking statements or forward-looking information, except as required by law.
SOURCE Legumex Walker Inc.