UFA Co-operative Announces Investment in CANTERRA SEEDS

CALGARY, AB, July 3, 2024 /CNW/ - United Farmers of Alberta Co-operative Limited ("UFA") and CANTERRA SEEDS Holdings Ltd. ("CANTERRA SEEDS") announced today that UFA has made an investment (the "Transaction") in CANTERRA SEEDS through the acquisition of 1,286,187 Class A common shares in the capital of CANTERRA SEEDS (the "Purchased Shares") from Ceres Global Ag Corp. ("Ceres"), representing 17% of the issued and outstanding Class A common shares of CANTERRA SEEDS.

In connection with the Transaction, Scott Bolton, President and CEO of UFA, has been appointed, as a representative of UFA, to the CANTERRA SEEDS board of directors.

"Today's announcement marks an investment in western Canadian agriculture," says Bolton. "Over the last several years UFA has demonstrated strong results and built a balance sheet that will enable continued investment in western Canadian agriculture that benefits our member-owners."  

The investment in CANTERRA SEEDS will not impact day-to-day operations or limit the seed varieties available for purchase at UFA. The co-operative will continue to carry a full line of seed varieties and crop input products as UFA recognizes that it is essential to continue to provide members and customers with choices in the products and services that are right for their operations.

"Our board of directors understands the unique challenges faced by farmers and ranchers, and this announcement demonstrates our commitment to the long-term vitality of member-owners," says Kevin Hoppins, Board Chair, UFA.

About CANTERRA SEEDS

CANTERRA SEEDS, headquartered in Winnipeg, Manitoba, is also owned by Limagrain, 175 seed growers, ag retailers and private investors. The company offers one of the broadest field seed portfolios in western Canada including canola, cereals, pulses and specialty crops. They secure top-quality hybrids and varieties through plant breeding institutions, including their cereals breeding joint venture with farmer-owned Limagrain, Limagrain Cereals Research Canada.

Early Warning Disclosure

Pursuant to a share purchase agreement dated July 2, 2024 between UFA and Ceres, UFA acquired the Purchased Shares from Ceres for aggregate cash consideration of CAD$2,500,000.00 or approximately $1.94 per share. The Transaction did not occur on a stock exchange or other securities market. The Purchased Shares represent 17% of the issued and outstanding Class A common shares in the capital of CANTERRA SEEDS. Prior to completion of the Transaction, UFA did not hold any securities of CANTERRA SEEDS.

The Purchased Shares were acquired as part of a strategic investment in CANTERRA SEEDS. UFA intends to review its holdings in CANTERRA SEEDS on a continuing basis and, in accordance with applicable securities law, may sell some or all of the Purchased Shares, or may purchase additional securities of CANTERRA SEEDS in the future, either from treasury, in private transactions or otherwise, in each case, depending on market conditions, the business and prospects of CANTERRA SEEDS and other relevant factors. UFA may formulate other purposes, plans or proposals regarding CANTERRA SEEDS or any of its securities or may change its intention with respect to any and all matters.

For the purposes of this press release and the early warning disclosure, the percentages of outstanding Class A common shares of CANTERRA SEEDS owned and controlled by UFA is based on 7,551,147 issued and outstanding Class A common shares both before and upon completion of the Transaction.

UFA's head office is located at Suite 700, 4838 Richard Road SW Calgary Alberta T3E 6L1. CANTERRA SEEDS' head office is located at 201 1475 Chevrier Blvd., Winnipeg Manitoba R3T 1Y7.

A copy of the early warning report will be filed by UFA under CANTERRA SEEDS' profile on SEDAR+ at www.sedarplus.ca or may be obtained by contacting UFA at the contact information provided below.

About UFA

Founded in 1909, UFA is an Alberta-based agricultural co-operative with more than 120,000 member-owners. UFA's network is comprised of 114 Petroleum locations, 34 Farm & Ranch Supply stores and a support office located in Calgary Alberta. Independent Petroleum Agents and more than 1,100 UFA employees provide products, services and agricultural solutions to farmers, ranchers, members and commercial customers in Alberta, British Columbia and Saskatchewan. For more information, please visit www.UFA.com.

SOURCE United Farmers of Alberta Co-operative Limited

Media Contact: Trish Nixon, UFA Communications, (c) 403-875-7595, [email protected]