May 5, 2022 - Vancouver, British Columbia - Clean Seed Capital Group Ltd. (“Clean Seed” or the “Company”) () is pleased to outline spring activities and milestones for the Company.
With the ongoing challenges in agriculture, from overseas disruptions, skyrocketing input costs, climate pressures and the need to feed an ever-growing population, Clean Seed is well positioned to capitalize on the global pressures and demands for a sustainable future in agricultural production. Our patented technology is the new benchmark in seeding and planting; we limit crop input costs, increase crop yields and reduce the environmental impact, mitigating the ever-growing pressures in food production. Here are some of the recent events that have set us up for success in the first half of 2022:
In preparation for this spring seeding season, the Company is proud to have appointed two top tier dealers to distribute the SMART Seeder MAX™ product line in Alberta and Saskatchewan:
- Deerland Equipment (Deerland) - a privately-owned multi-store dealer network located in Alberta (announced September 15, 2021), and
- Canada West Harvest Centre (CAWHC) - a multi-store dealer network located throughout Saskatchewan owned by CLAAS of America (announced March 31, 2022).
Dealer Demo Program
Our sales team is working closely with our dealer networks on our SMART Seeder MAX™ demonstration programs for both Alberta and Saskatchewan as well as robust dealer training initiatives to assure a strong spring season. We continue to evaluate additional dealer opportunities in Canada and the United States and expect further updates in the coming months. Our dealer demonstration programs are a core part of our commercialization strategy to generate consumer interest and will continue through spring and then transition into our trade show programs.
Our trade show program begins with Ag in Motion on July 19-21, 2022, the largest outdoor live demo tradeshow of its kind in Canada with over 30,000 attendees. At this event we will feature two SMART Seeder MAX’s, one as a static display and another running daily live seeding demonstrations for attendees. Customers can touch the equipment, operate the software, compare seeding equipment operations side-by-side, and talk to our team face-to-face. CAWHC will also be on site throughout the event with a full sales team to service customer needs. We are also excited to announce the presence of two flagship CLAAS XERION 5000 tractors at the event and wish to provide a special thank you to CAWHC for providing these amazing units. After Ag in Motion, Clean Seed will then head to the heart of farm country in the United States, Farm Progress USA located in Boone, Iowa. This is the nation’s largest outdoor farm event running in late August. For over 50 years, the Farm Progress Show has connected farmers from across the globe. There is no better place to engage with the industry and launch our SMART Seeder MAX™ in the USA!
We anticipate we will receive purchase orders from the SMART Seeder dealer demonstration program and tradeshow activities for our 2023 SMART Seeder MAX production run.
Mini-MAX on Route to India
Further to our news release dated January 31, 2022, the Company has completed production of its Mini-MAX™ demonstration unit and has shipped the unit to India via ocean freight. We are expecting the Mini-MAX™ to arrive in India in late May. In June the Company will commence demonstration activities with one of India's top agricultural equipment manufacturers. Upon completion of the demonstration program, we expect to collaborate with this group on a commercialization program for the Mini-MAX™ in India and the other countries it operates within.
To support its spring program and execute its planned milestones, the Company announces a non-brokered private placement for gross proceeds of $1,508,750.
The Company will issue 6,035,000 units of the Company (the “Units”) at a price of $0.25 per Unit, for gross proceeds of $1,508,750 (the “Offering”). Each Unit consists of one common share and one-half of one common share purchase warrant (a “Warrant”). Each full Warrant will entitle the holder to purchase one common share of the Company for a period of 12 months from the closing date of the Offering at $0.35 per share. In conjunction with the Offering, the Company will pay aggregate finder’s fees of $10,425.
All securities to be issued pursuant to the Offering will be subject to a regulatory hold period of four months and a day in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws, and such other further restrictions as may apply under foreign securities
Certain insiders of the Company purchased an aggregate of 380,000 Units in the Offering. The Company has relied on the exemptions from the valuation and minority shareholder approval requirements of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101") contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101 in respect of such insider participation.
The Company has filed a preliminary shelf prospectus with the BC Securities Commission (“BCSC”) to provide for flexibility in its long-term capitalization plans. The Company is in receipt of the initial comments from the BCSC and is working with its counsel on a final form of prospectus. We anticipate filing the final prospectus and receiving final receipt in June 2022.
We look forward to a strong spring season and playing a meaningful role in the future of crop production.
ON BEHALF OF THE BOARD
Chairman and CEO
About Clean Seed Capital Group Ltd.
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 turn solutions for modern agricultural problem into commercially viable products to fulfill new demand.
Clean Seed’s SMART Seeder™ technologies are revolutionary seeding tools that utilize the unique synergy of sophisticated electronic metering and intuitive software control putting row-by-row 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 Clean Seed at 604-566-9895 and visit our website at 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. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words “anticipate”, “estimate”, “believe”, “continue”, “could”, “expects”, “intend”, “plans”, "postulates", "predict", “will”, “may” or similar expressions suggesting future conditions or events or the negative of these terms are generally intended to identify forward-looking information. 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. There is no assurance as to the quantity of equipment that may be sold, that the funds realized under the Offering will be spent in the manner contemplated, or that a final shelf prospectus will be receipted. 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.