Clean Seed Capital Advances Harvest International Acquisition
March 1, 2019 - Vancouver, British Columbia
I am pleased to report that over the past several months Clean Seed has worked closely with Harvest International to complete its extensive due diligence program.
The collaborative nature of this acquisition has resulted in a robust strategic plan that we believe will fast-track market share growth in the U.S. and increase our offerings in Canada. The due diligence process has solidified our collective resolve to become the firstnew entrant into the U.S. planter market in 25 years, allowing us to disrupt the current balance of power in the industry.
We are pleased to provide the following updates:
- Approved debt funding in the amount of approximately $9.2 millionCDN ($7.1 million USD) (subject to the satisfaction of certain conditions) towards the purchase of Harvest International from Farm Credit Canada (FCC).
- With FCC funding conditionally secured, we are advancing operating line discussions for $3.1 million CDN from a Canadian chartered bank with an active U.S. presence. We expect our discussions to advance towards application approval in the next thirty days.
- Entered into a (LOI) letter of intent with an American multinational information technology company to integrate (AI) Artificial Intelligence data analysis tools into the company’s SMART Seeder / Planter technology software platforms. This technology company has operations in all major seeding and planting marketplaces.
75000 Square Foot Manufacturing Facility - Iowa USA
Clean Seed is in the final phase of financing and is actively engaging with investment institutions to raise the remaining funds to complete the transaction. Clean Seed and Harvest International have agreed to extend the closing date of their agreement to April 15, 2019 to provide sufficient time to complete financing activities and facilitate closing of the transaction.
Chairman of the Board of Directors and Chief Executive Officer
About Clean Seed Capital Group Ltd.
The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol "CSX".
We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at an incredibly high level. We pride ourselves as progress facilitators that quickly turn viable concepts and ideas into commercially viable products that can fulfill demand.
The CX-6 SMART Seeder™ is a revolutionary seeding tool that utilizes the unique synergy of sophisticated electronic metering and intuitive software control putting row-by-row six-meter variable rate technology at the forefront of agricultural innovation. Our innovations create a new class of highly accurate seeding equipment designed specifically for today’s farmer.
For further information please contact Investor Relations at Clean Seed at 604-566-9895 and visit our website at http://www.cleanseedcapital.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The common shares of Clean Seed Capital Group Ltd. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:
This news release includes certain “forward-looking statements” as defined under applicable Canadian securities legislation. Forward-looking statements herein include, but are not limited to, statements with respect to: completing the acquisition of Harvest International and completing the financing for the acquisition (including the proposed financings disclosed herein), the anticipated terms thereof, our ability to satisfy the conditions of the FCC financing proposal, and the anticipated timing thereof; the anticipated benefits of the acquisition including anticipated sales and market share growth in the U.S. and increased offerings in Canada, the development, launch, production and distribution of a portfolio of farmer focused planters and seeders and that such planters and seeders will have the potential to be recognized as best-in-class products or disrupt the balance of power in the planting and seeding industry; our expectations regarding establishing dealer and customer finance programs, our combined operations and the results of due diligence being satisfactory. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Clean Seed has provided this information in reliance on certain assumptions that it believes are reasonable, including assumptions as to the timing of receipt of the necessary approvals and the satisfaction of and time necessary to satisfy the conditions to the closing of the acquisition, including Clean Seed's ability to obtain and close the requisite financing. These dates may change for a number of reasons, including the inability to secure necessary approvals in the time assumed or at all, the inability to obtain financing in the time assumed, on commercially reasonable terms, or at all, or the need for additional time to satisfy the conditions to the completion of the acquisition or the financing. In addition, there are no assurances the acquisition or related financings will be completed on the terms disclosed herein or at all or that if completed that Clean Seed will achieve the anticipated benefits thereof. Accordingly, readers should not place undue reliance on forward-looking statements. Further information regarding these and other risks is included in the Company's Management Discussion and Analysis filed on SEDAR. Clean Seed disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.