MINNEAPOLIS, MN, Aug. 16, 2019 /CNW/ - Ceres Global Ag Corp. (TSX:
CRP) ("Ceres" or the "Company"), a global agricultural, energy and
industrial products merchandizing and supply chain company, has
announced today that it has completed its acquisition of Delmar
Commodities, Ltd. ("Delmar") based in Winkler, Manitoba. Ceres has acquired 100% of
Delmar's issued and outstanding shares for approximately CAD
$15.25 million in cash paid to
Delmar's shareholders, and the assumption of approximately
$7.6 million in existing term debt.
The acquisition was funded with a combination of debt and existing
working capital.
"With the completion of this acquisition we have made meaningful
progress on our goal to diversify our product lines, add strategic
origination capabilities for our core products, and expand our
geographic footprint in Canada,"
said Mr. Robert Day, President and
Chief Executive Officer at Ceres. "We welcome the talented team at
Delmar to Ceres and look forward to working together as we continue
to execute on our growth strategy."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of
industry experts, Ceres procures and supplies North American
agricultural commodities and value-added products, industrial
products, fertilizer, and energy products, and provides 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. Its 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., 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 Canada-based seed
development company.
For more information, please visit
www.ceresglobalagcorp.com.
About Delmar Commodities, Ltd.
Delmar Commodities, Ltd. is a Manitoba-based agricultural processing and
supply chain company with four primary business lines: Grain
merchandizing, soybean crush, birdfeed production and sales, and is
the exclusive distributor in western Canada of Legend Seed products under a license
and distribution agreement with Legend Seeds, USA.
For more information, please visit
www.delmarcommodities.com.
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 integration of Delmar, 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 relating to the subject matter of this
press release is based include successfully integrating
Delmar's operations and its employees into Ceres' overall business,
as well as those matters listed in the "Forward-Looking
Information" section of the MD&A for the period ended
March 31, 2019. 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.