MINNEAPOLIS, MN, Oct. 5, 2018 /CNW/ - Ceres Global Ag Corp.
("Ceres" or the "Company") (TSX: CRP) today announced that it had
entered into a settlement agreement with The Scoular Company
("Scoular") to settle the pending lawsuit filed by Scoular against
Ceres in the United States
District Court of the District of Minnesota. As previously disclosed, Scoular
had sought injunctive relief and damages relating to the proposed
joint development and construction of a grain facility at the
Company's Northgate Commodity Logistics Centre ("Northgate").
As part of the settlement, the Company will pay US$11.25 million in cash to Scoular and Scoular
will release all claims against Ceres relating to the subject
matter of the lawsuit. The settlement includes reimbursement
for contributions made during the development of Northgate.
The Company had already taken a US$3.0
million reserve against a potential liability in connection
with this lawsuit and will therefore recognize a loss of
US$8.25 million in the financial
statements.
"Settling this case enabled Ceres to avoid significant trial
litigation costs and eliminate risks associated with a trial by
jury," said Robert Day, President
and Chief Executive Officer at Ceres. "Therefore, we are pleased to
have it behind us and we look forward to continuing with our
long-term growth plans."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through our network of commodity logistics centers and team of
industry experts, Ceres procures and provides North American
agricultural commodities & value-added products, industrial
products, fertilizer, energy products and reliable supply chain
logistics services to customers worldwide.
Ceres operates five locations, Duluth,
MN; Minneapolis, MN; Shakopee, MN;
Northgate, Saskatchewan; and Port Colborne, Ontario, and is headquartered
in Minneapolis, MN. Our facilities throughout North
America have an aggregate grain and oilseed storage capacity
of approximately 29.7 million bushels.
Ceres also has a 50% interest in Savage Riverport LLC, a joint
venture with Consolidated Grain and Barge Co. ("CGB"), a 25%
interest in Stewart Southern Railway Inc., a short-line railway
located in southeast Saskatchewan with a range of 130
kilometers, and a 17% interest in Canterra Seed Holdings Ltd, a
Canadian-based seed development company.
Cautionary Notice: This news release contains
"forward-looking information" within the meaning of applicable
Canadian securities legislation and United States securities laws. Forward-looking
information may include, but is not limited to, statements
regarding future operations and results, anticipated business
prospects and financial performance of Ceres and its subsidiaries,
including the plans, costs, timing and capital for the further
development of the Northgate Commodities Logistics Centre,
expectations or projections about the future, strategies and goals
for growth, expected and future cash flows, costs, planned capital
expenditures, regulatory change, general economic political and
market conditions anticipated capital projects, construction and
completion dates, operating and financial results, critical
accounting estimates, the expected financial and operational
consequences of future commitments. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "plans", "expects" or "does not
expect", "is expected", "budget", "scheduled", "estimates",
"forecasts", "intends", "anticipates" or "does not anticipate",
"believes", "may have implications" or variations of such words and
phrases or statements that certain actions, events or results
"may", "could", "would", "might", or "will be taken", "occur", or
"be achieved". Forward-looking information is based on the opinions
and estimates of management at the date the information is made,
and is based on a number of assumptions and subject to a variety of
risks and uncertainties and other factors that could cause actual
events or results to differ materially from those projected in the
forward-looking information. Key assumptions upon which such
forward-looking information is based are listed in the
"Forward-Looking Information" section of the MD&A for the
period ended September 30, 2017. Many
such assumptions are based on factors and events that are not
within the control of Ceres and there is no assurance they will
prove to be correct. Factors that could cause actual results to
vary materially from results anticipated by such forward-looking
information include, among others, risks related to weather,
politics and governments, changes in environmental and other laws
and regulations, competitive factors in agricultural, food
processing and feed sectors, construction and completion of capital
projects, labour, equipment and material costs, access to capital
markets, interest and currency exchange rates, technological
developments, global and local economic conditions, the ability of
Ceres to successfully implement strategic initiatives and whether
such strategic initiatives will yield the expected benefits, the
operating performance of the Corporation's assets, the availability
and price of commodities and regulatory environment, processes and
decisions. Although Ceres has attempted to identify important
factors that could cause actual actions, events or results to
differ materially from those described in forward-looking
information, there may be other factors that cause actions, events
or results that are not anticipated, estimated or intended. There
can be no assurance that forward-looking information will prove to
be accurate, as actual results and future events could differ
materially from those anticipated in such information. Ceres
undertakes no obligation to update forward-looking information
if circumstances or management's estimates or opinions
should change, except as required by applicable securities
laws. The reader is cautioned not to place undue reliance on
forward-looking information.
SOURCE Ceres Global Ag Corp.