Affinor Growers Enters Into a LOI for the Acquisition of Fab-All for $10 Million and VDL to Exercise 2,200,000 Warrants.
June 09 2014 - 3:25PM
Marketwired Canada
Affinor Growers (CSE:AFI)(FRANKFURT:1AF)(OTCQB:RSSFF) ("Affinor" or the
"Corporation) has entered in to a letter of intent (the "LOI") to acquire
Fab-All Manufacturing Ltd., a strategic partner specialised in the precision
metal fabrication, machining and finishing.
Fab-All Manufacturing is working closely with Affinor Growers to build and
fabricate the physical equipment and technology, used to mechanically pollinate
and grow their grade A1 strawberries, hence the vertical integration benefit to
Affinor.
Strategically and vertically this would be an excellent acquisition by Affinor
Growers as Fab-All Manufacturing has been in business since 1985 and generates
approximately $12,000,000 in revenue. Fab-All Manufacturing is setting new
industry standards in precision metal fabrication, machining and metal
finishing.
Basic terms of the LOI provides for the acquisition of all the securities of
Fab-All Manufacturing and associated Sig & Ron Limited for an aggregate of
$5,000,000 in cash and $5,000,000 in common shares at a deemed price of $1 per
share. The assets of Fab-All include a 30,000 square feet building, 4 acres of
land and all the state-of-the-art machinery. Fab-All owner, Ron Adolf and his
team would continue to manage operations, however it would be 100% owned by
Affinor.
The acquisition will be subject to the parties entering into a definitive
acquisition agreement, including standard not compete provision for principals
and the Corporation's due diligence, which is expected to be completed in a
timely manner but no later than June 30, 2014.
Nick Brusatore, Chairman, comment: "I am very excited about the acquisition of
Fab-All as I have worked with this company for many years in the development and
manufacturing of a number of products. This acquisition also gets Affinor to an
immediate revenues and profitable position".
Affinor was also informed by Vertical Design Ltd. that they will exercise their
2,200,000 warrants acquired under the last private placement offering of units
for an aggregate exercise price of $880,000. The Corporation expects to receive
the formal notice together with payment no later than Friday.
About Affinor Growers Inc.
Affinor Growers is a diversified publicly traded company on the Canadian
Securities Exchange under the symbol ("AFI"). Affinor is focused on growing high
quality crops such as romaine lettuce, spinach, strawberries and high quality
medical Marijuana. Affinor is committed to becoming a pre-eminent grower, using
exclusive vertical farming techniques.
On Behalf of the Board of Directors
AFFINOR GROWERS INC.
Sebastien Plouffe, President & CEO
The CSE has not reviewed and does not accept responsibility for the adequacy or
accuracy of this release
FORWARD LOOKING INFORMATION
This News Release contains forward-looking statements. The use of any of the
words "anticipate", "continue", "estimate", "expect", "may", "will", "project",
"should", "believe" and similar expressions are intended to identify
forward-looking statements. Although the Company believes that the expectations
and assumptions on which the forward-looking statements are based are
reasonable, undue reliance should not be placed on the forward-looking
statements because the Company can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and conditions,
by their very nature they involve inherent risks and uncertainties. These
statements speak only as of the date of this News Release. Actual results could
differ materially from those currently anticipated due to a number of factors
and risks including various risk factors discussed in the Company's disclosure
documents which can be found under the Company's profile on www.sedar.com. This
News Release contains "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E the Securities
Exchange Act of 1934, as amended and such forward-looking statements are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995.
FOR FURTHER INFORMATION PLEASE CONTACT:
Sebastien Plouffe
President & CEO
(514) 947-2272
splouffe@affinorgrowers.com
www.affinorgrowers.com
Vertical Designs Ltd
Nick Brusatore, CEO
(604) 356-0411
nbrusatore@gmail.com
Momentum PR Inc
Max Gagne, President
(514) 913-0351
max@momentumpr.com
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