WINNIPEG, Manitoba, Oct. 03, 2018 (GLOBE NEWSWIRE) --
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Ag Growth International Inc. (TSX:AFN) ("AGI" or the “Company”) today announced it has entered into an agreement with a
syndicate of underwriters led by CIBC Capital Markets and National Bank Financial Inc. (the “Underwriters”), pursuant to which AGI
will issue on a “bought deal” basis, 1,630,000 common shares (“Common Shares”) at a price of $61.50 per share to raise
gross proceeds of approximately $100 million (the “Offering”). AGI has also granted the Underwriters an Over-Allotment Option,
exercisable in whole or in part for a period expiring 30 days following closing, to purchase up to an additional 244,500
Common Shares at the same offering price. If the Over-Allotment Option is fully exercised, the total gross proceeds to AGI will be
approximately $115 million.
The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may
not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements
thereof. This news release shall not constitute an offer to sell, or the solicitation of any offer to buy, nor shall there be any
sale of Common Shares in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such province, state or jurisdiction.
A preliminary short form prospectus qualifying the distribution of the Common Shares will be filed with the securities
regulatory authorities in each of the provinces of Canada (other than Quebec). Closing of the Offering is expected to occur on or
about October 25, 2018. The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock
Exchange.
The net proceeds of the offering will be used to repay outstanding indebtedness, to pursue potential acquisition opportunities
and for working capital and general corporate purposes.
Company Profile
AGI is a leading provider of equipment solutions for agriculture bulk commodities including seed, fertilizer, grain, and feed
systems with a growing platform in providing equipment and solutions for food processing facilities. AGI has manufacturing
facilities in Canada, the United States, the United Kingdom, Brazil, South Africa and Italy and distributes its product
globally.
Further information about AGI and its business can be found in the disclosure documents filed by the Company with the securities
regulatory authorities, available at www.sedar.com and on AGI's website www.aggrowth.com.
Forward-Looking Statements
This news release contains forward-looking information within the meaning of applicable securities laws that reflects our
expectations regarding the future growth, results of operations, performance, business prospects, and opportunities of the Company.
Forward-looking information may contain such words as “anticipate”, “believe”, “continue”, “could”, “expect”, “intend”, “plan”,
“will” or similar expressions suggesting future conditions or events. In particular, this press release includes forward-looking
statements relating to the proposed timing of completion of the Offering and the anticipated use of the net proceeds of the
Offering. Such forward-looking information is based on current expectations that involve a number of risks and uncertainties which
could cause actual results to differ from those anticipated. These risks include, but are not limited to, the failure or delay in
satisfying any of the conditions to the completion of the Offering. Additional information on these and other factors that could
affect AGI's operations, financial results or dividend payments are described under “Risks and Uncertainties” and "Forward-Looking
Information" in our most recently filed Management's Discussion and Analysis and Annual Information Form. These factors should be
considered carefully, and readers should not place undue reliance on the Company’s forward-looking information. We cannot assure
readers that actual results will be consistent with this forward-looking information and we undertake no obligation to update such
information except as expressly required by law.
For More Information Contact:
Investor Relations
Steve Sommerfeld
204-489-1855
steve@aggrowth.com