SSC Security Services Corp Ordinary Shares V.INP

RE:RE:Introducing myself

[bradfarquhar]

Hi Schocor,

In response to your questions:

1. High canola prices can be both good and bad for Input, and I suspect for reasons that would apply to streamers of other commodities too.  Streamers effectively hold multi-year long-term call options on whatever commodities they stream, so higher prices are good for revenue and bottom-line results. At the same time, if commodity prices are very high, hot capital tends to rush into that space and provide other alternative sources of financing, making it more difficult for streamers to get the attention of producers.  At Input, our preference is a canola price at which it is profitable for farmers to grow canola, but not so high that it affects the market for what we have to offer.  A canola price between $400/MT and $500/MT is a good environment to execute on our business plan, although a price in the lower half of that range can serve as a helpful reminder to  prospective clients of the value of our Marketing Streams.

2. Several years ago, we put out a press release that we were researching opportunities for soybean streaming. We concluded that the time was not yet right for soybeans as an opportunity, at least in western Canada, the area where we operate and know best. As soybean acres grow in western Canada, our view might change.

All the best,

Brad