WINNIPEG, July 16, 2019 /CNW/ - Ag Growth
International Inc. (TSX: AFN) ("AGI" or the "Company") is pleased
to announce it has agreed to make a minority equity investment of
US$15M in Farmobile, Inc.
("Farmobile"), with funding expected to occur on July 17, 2019. AGI and Farmobile have also
entered into a Strategic Commercial Agreement to expand the
existing collaboration between the two companies. AGI has the right
to appoint two directors to the Farmobile board of directors as a
result of this investment.
Farmobile, headquartered in Leawood,
Kansas, is an independent agriculture technology
company. Farmobile provides hardware and software services
for the real-time collection, organization, analysis, and storage
of farm data. The Farmobile PUC IoT device collects and
streams second-by-second geo-tagged agronomic and machine data on
every pass of the field from farm equipment of most makes and
models. This data is converted into standardized Electronic
Field Records which can be viewed via desktop or mobile, shared
with trusted advisors, and monetized through its digital
marketplace, the Farmobile DataStore exchange. The automatically
collected data is used as a system of record for as-applied,
as-planted and as-harvested data records. The company's revenue is
generated from Farmobile PUC subscriptions to farmers, ag retailers
and trusted advisors, and data licensing.
"Our investment in Farmobile substantially expands our
technology platform and integrates automated data collection
seamlessly within our IntelliFarms SureTrack farm management and
grain exchange platform," said Tim
Close, CEO of AGI. "SureTrack is the only business tool
available for farmers that brings together a suite of sensors, from
the field to grain bins, to enable complete farm management all
integrated with real time field activity data, market leading grain
handling, storage and conditioning equipment, and a comprehensive
grain exchange that allows farmers to find the best price for their
product or to market their product based on the characteristics of
their grain. A powerful combination that now also provides a
means for our customers to standardize, control and monetize their
data, on their own terms. We are very pleased to deepen our
relationship with Farmobile as we stay laser focused on delivering
market leading solutions for our customers."
COMPANY PROFILE
AGI provides farm and commercial solutions and systems for
storage, handling, structures, processing, and controls in seed,
fertilizer, grain, feed, and food. From planning and project
management to engineering and manufacturing, AGI supplies the
world's food infrastructure.
Further information can be found in the disclosure documents
filed by AGI with the securities regulatory authorities, available
at www.sedar.com and on AGI's website www.aggrowth.com.
FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements that
reflect our expectations regarding the future growth, results of
operations, performance, business prospects, and opportunities of
the Company. Forward-looking statements may contain such words as
"anticipate", "believe", "continue", "could", "expect", "intend",
"plan", "will" or similar expressions suggesting future conditions
or events. In particular, the forward-looking statements in this
press release include statements relating to our business and
strategy, including our expectations with respect to the expected
benefits of the Farmobile investment. Such forward-looking
statements reflect our current beliefs and are based on information
currently available to us, including certain key expectations and
assumptions concerning anticipated grain production in our market
areas, financial performance, business prospects, strategies,
product pricing, regulatory developments, tax laws, the sufficiency
of budgeted capital expenditures in carrying out planned
activities, currency exchange rates and the cost of materials,
labour, services, AGI's ability to achieve the expected benefits of
the investment in Farmobile, and the anticipated impact of the
investment in Farmobile on AGI's business. Forward-looking
statements involve significant risks and uncertainties. A number of
factors could cause actual results to differ materially from
results discussed in the forward-looking statements, including
changes in international, national and local business conditions,
weather patterns, crop planting, crop yields, crop conditions, the
timing of harvest and conditions during harvest, seasonality,
industry cyclicality, volatility of production costs, agricultural
commodity prices, the cost and availability of capital, currency
exchange rates, competition and the failure to realize some or all
of the anticipated benefits of the investment in Farmobile. These
risks and uncertainties are described under "Risks and
Uncertainties" in our most recently filed MD&A and Annual
Information Form. These factors should be considered carefully, and
readers should not place undue reliance on the Company's
forward-looking statements. There can be no assurance that any of
the anticipated benefits of the investment in Farmobile will be
realized. We cannot assure readers that actual results will be
consistent with these forward-looking statements and we undertake
no obligation to update such statements except as expressly
required by law.
SOURCE Ag Growth International Inc. (AGI)