MINNEAPOLIS, Nov. 30, 2020 /CNW/
- Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today
announced that its wholly owned subsidiary, Riverland Ag Corp.
("Riverland") has entered into an agreement with Farmer's Co-op
Grain and Seed Association ("FCGS"), an agricultural cooperative
based in Thief River Falls,
Minnesota, to form a grain merchandising joint venture to be
based in Thief River Falls (the
"Joint Venture"). FCGS will contribute its existing grain elevator
and related grain merchandising assets in Thief River Falls to the Joint Venture, with
Riverland contributing cash. The transaction is expected to close
in January 2021. Following closing,
the Joint Venture will undergo an expansion project designed to
enable loading unit trains. The facility will be serviced by
Canadian Pacific (CP) and FCGS will continue to operate its
non-grain merchandising businesses independent of the operation of
the Joint Venture.
"The formation of this Joint Venture marks a meaningful step in
our broader strategy to increase core product origination directly
from growers, including the Thief River
Falls area in particular" said Mr. Robert Day, President and Chief Executive
Officer at Ceres. "We look forward to partnering with the hundreds
of growers who make up FCGS and working closely with the CP to
efficiently market growers' products and create value for our
downstream customers."
"Adding storage and rail loading capabilities to our elevator in
Thief River Falls is a critical
step FCGS must take in order to maintain its market
competitiveness, both for today and into the future" said Mr.
Darwin Klamar, President of FCGS's
board. "With Riverland's expertise in managing railroad
programs and providing destination market access, FCGS will be well
positioned to serve the needs of its growers and patrons for
decades to come."
"CP looks forward to servicing this high-throughput facility,
which will meet our 8,500-foot High Efficiency Product standards,"
says Joan Hardy, CP Vice-President
Sales and Marketing, Grain and Fertilizers. "We commend Riverland
Ag and Farmer's Co-op Grain and Seed Association on moving this
project forward, enhancing the grain handling capacity in this
region."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of
industry experts, Ceres merchandizes high-quality North American
agricultural commodities and value-added products and provides
reliable supply chain logistics services to agricultural, energy
and industrial customers worldwide.
Ceres is headquartered in Minneapolis,
MN and together with its wholly owned affiliates, operates
13 locations across Saskatchewan,
Manitoba, Ontario, and Minnesota. These facilities have an aggregate
grain and oilseed storage capacity of approximately 31 million
bushels.
Ceres also has a 50% interest in Savage Riverport, LLC, a joint
venture with Consolidated Grain and Barge Co., a 50% interest in
Gateway Energy Terminal, an unincorporated joint venture with Steel
Reef Infrastructure Corp., 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.
About Farmer's Co-op Grain and Seed Association
(farmerscooptrf.com)
Established in 1940, FCGS provides a broad range of agricultural
products and services to producers, customers and patrons,
including grain merchandising and storage, agronomy services, seed
products and trucking services. FCGS' patron base consists of over
400 growers across a 3-county area.
Cautionary Notice: This news release may contain
"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 the timing and completion of the
Private Placement and the proposed use of proceeds. Generally,
forward-looking information can be identified by the use of
forward-looking terminology such as "expects," "intends,"
"anticipates," "believes" or variations of such words and phrases
or statements that certain
actions, events or results "may," "could," "would" or "might," "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. 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.