Seneca Foods Acquires 49% Stake in CraftAg, LLC
February 06 2020 - 4:15PM
Seneca Foods Corporation (“Seneca”) (NASDAQ: SENEA, SENEB) and
CraftAg Enterprises, Inc. (“CraftAg”) announced today the formation
of a joint-venture, CraftAg, LLC, a vertically integrated
seed-to-sale hemp company.
CraftAg was one of the early participants in Washington State’s
hemp pilot program, working with a small network of growers in the
Yakima Valley to produce, process, and sell Aromahemp™ – a safe,
flavorful, and premium quality input for smokable hemp products and
herbal vapor blends. CraftAg’s proprietary techniques for
processing superior dried and cured whole hemp flower distinguish
it from the many processors focusing on cannabinoid isolates.
The newly formed CraftAg, LLC will process hemp in Sunnyside,
WA, at a facility that was previously owned by Seneca and used as a
pear and apple cannery. The repurposed 270k square foot facility
has already begun processing the 2019 crop of Aromahemp™, and is
ideally located in the heart of the Yakima Valley, a region
well-suited for growing specialty crops such as hemp.
Seneca is investing approximately $10 million and contributing
the Sunnyside facility to acquire a 49% stake in CraftAg, LLC.
CraftAg, LLC plans to further build-out its vertically integrated
production network, including the construction of a large-scale,
technologically state-of-the-art, automated hemp processing plant
at the Sunnyside, WA facility, while modernizing CraftAg’s existing
seed and clone propagation facilities located near Royal City,
WA.
“Seneca is enthused to be partnering with CraftAg in this
rapidly growing hemp agribusiness”, stated Kraig Kayser, Seneca
Foods’ President and CEO. “The opportunity to repurpose a closed
cannery to create a new and exciting business in Sunnyside is very
compelling.”
Rory Rawlings, CraftAg CEO stated: “CraftAg is excited to
announce this joint venture with Seneca Foods to accelerate the
growth of our vertically integrated supply chain for premium
Aromahemp™ flower and related products. The new partnership
combines CraftAg’s hemp expertise with Seneca’s multi-generational
legacy in food production and distribution at scale. The result is
an unbeatable platform for development and production of new
hemp-based consumer products.”
About Seneca Foods CorporationSeneca Foods is
North America’s leading provider of packaged fruits and vegetables,
with facilities located throughout the United States. Its high
quality products are primarily sourced from over 2,000 American
farms. Seneca holds the largest share of the retail private
label, food service, and export canned vegetable markets,
distributing to over 90 countries. Products are also
sold under the highly regarded brands of Libby’s®, Aunt Nellie’s®,
READ®, Cherryman® and Seneca labels, including Seneca snack
chips. Seneca’s common stock is traded on the Nasdaq
Global Stock Market under the symbols “SENEA” and “SENEB”. SENEA is
included in the S&P SmallCap 600, Russell 2000 and Russell 3000
indices.
About CraftAg Enterprises, Inc.CraftAg
Enterprises, Inc. is an agribusiness and technology company.
Forward-Looking StatementsStatements that are
not historical facts, including statements about management’s
beliefs or expectations, are forward looking statements as defined
in the Private Securities Litigation Reform Act (PSLRA) of
1995. All forward-looking statements involve risks,
uncertainties and contingencies which may cause actual results,
performance, or achievements to differ materially from anticipated
results, performance, or achievements. Factors that may cause
actual results to differ materially from those in the
forward-looking statements include those set forth in Seneca Foods
Corporation’s filings with the SEC, including the disclosure under
the heading “Risk Factors” in Seneca Foods’ Annual Report on Form
10-K. There can be no assurance that the merger will close on
the expected schedule or that the merger will be consummated at
all. We are under no obligation to update or alter our
forward-looking statements, whether as a result of new information,
future events or otherwise.
Contacts: Timothy J. Benjamin, Chief Financial OfficerSeneca
Foods Corporation315-926-8100
Travis Lumpkin, Chief Corporate Affairs OfficerCraftAg
Enterprises, Inc.360-830-6245
Seneca Foods (NASDAQ:SENEA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Seneca Foods (NASDAQ:SENEA)
Historical Stock Chart
From Apr 2023 to Apr 2024