Greenshields Agri Holdings PLC

02 March 2015

2 MARCH 2015

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF SUCH JURISDICTION

This announcement is an advertisement and not an admission document or a prospectus. It does not constitute or form part of, and should not be construed as, an offer to sell or issue, or a solicitation of any offer to buy or subscribe for, any securities, nor should it or any part of it form the basis of, or be relied on in connection with, any contract or commitment whatsoever. Investors should not subscribe for or purchase any securities referred to in this announcement except on the basis of information in the admission document (the "Admission Document") to be published by Greenshields Agri Holdings Plc, in connection with the proposed admission of the ordinary shares in the capital of the Company to trading on AIM, a market operated by London Stock Exchange plc ("Admission"). Copies of the Admission Document will, following publication, be available on the Company's website at www.greenshieldsagri.com.

GREENSHIELDS AGRI HOLDINGS PLC

("Greenshields", the "Group" or the "Company")

INTENTION TO FLOAT ON AIM

Established agricultural business and owner of farmland

Greenshields, the farmer, owner and contractor of arable farmland in the northern grain belt, announces that it is seeking admission to AIM.

The northern grain belt is a phrase used by the Group to describe the strip of arable farm land stretching up the east coast of the UK from the Humber estuary in England to the river Tay in Scotland ("Northern Grain Belt").

Greenshields is principally engaged in the production of grain and currently farms over 3,500 acres of farmland in the Northern Grain Belt, of which over 2,850 acres are owned by the Group. Upon Admission, the Group would be the only UK publically traded company providing investors with access to UK farmland ownership and an established arable farming business.

The Group's growth strategy is to expand its farming operations and to acquire further arable land at favourable prices in order to benefit from expected appreciation in land values.

The Group is seeking the Admission of its ordinary shares to trading on AIM in conjunction with a placing to raise approximately GBP3.0m ("Placing"). It is intended that the proceeds of the Placing will be used to acquire additional farmland in the Northern Grain Belt, commencing with 220 acres in Northumberland which will be acquired upon Admission in addition to investing in:

   --     crop production, entitlement purchase, storage and transportation; 
   --     farm equipment; and 
   --     related agricultural businesses. 

Well-placed to benefit from continued increase in the value of farmland

Historically, arable land has out-performed other traditional asset classes over the longer term. For example, Savills Market Survey of UK Agricultural Land 2015 stated that the average value of prime arable farmland across the UK strengthened by 14 per cent. to GBP10,000 per acre in 2014 following a 12 per cent. rise in 2013 and a 10-year cumulative average growth of 277 per cent. In comparison, prime London property prices grew 135 per cent. over the 10 years to February 2014. This land appreciation trend is expected to continue, with forecasts anticipating an increase in value of UK farmland of between 6-8% per annum over the next five years(1) .

The Directors believe that the Group is well placed to benefit from continued forecast farmland value appreciation over the long term, underpinned by a number of factors including increasing global demand for grain; potential to generate diversified income from the land; demand from investors for low-risk, tax-efficient investments; and the finite supply of land.

Benefitting from some of the world's highest wheat yields

In addition to having some of the highest wheat yields in the world thanks to fertile soil and longer daylight hours during the summer, the Northern Grain Belt benefits from land that is typically cheaper than that which is found further south. Using precision farming techniques, Greenshields employs a farming strategy that seeks to enhance the quality and productivity of the soil to secure year on year increases in yields. In 2014 Greenshields produced yields of 9.1 tonnes of wheat per hectare, ahead of the UK's national average of 8.6 tonnes per hectare.

Business Property Relief

The Company has been advised that its Ordinary Shares will qualify for Business Property Relief at a rate of up to 100% which provides Inheritance Tax Relief for investors holding them for more than two years.

Land for Equity

It is also envisaged that the Company may use its Ordinary Shares, in whole or in part, as consideration for further acquisitions of land.

Outlook

The Group will continue to review acquisition opportunities and new contract farming opportunities as and when they arise. The Directors believe prospects for the 2015 harvest look positive.

Bill Boase, Chief Executive Officer of Greenshields, commented: "Admission to trading on AIM would give Greenshields an excellent currency with which to expand its operations through acquisition of additional farmland and investment in equipment, crop production and income diversification.

"Greenshields is a proven and professional farming business managed by experienced operators. It is well positioned to benefit from expected increasing global grain demand, as well as anticipated continued increases in value of UK arable land.

"The Board is very excited about this opportunity, which would make Greenshields the only UK publicly traded company which gives investors access to UK farmland ownership and an established arable farming business.

"We are committed to growing the business and delivering value to our shareholders."

(1)    Source: Savills, February 2015 

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Contact

Greenshields Agri Holdings PLC

   Bill Boase, CEO                                                 +44 (0) 131 718 6100 

Cairn Financial (Nomad)

   James Caithie / Emma Earl                             +44 (0) 20 7148 7900 

Old Park Lane Capital (Broker)

   Charles Laughton / Zoe Alexander                +44 (0) 20 7493 8188 

Powerscourt (PR Adviser)

   Sophie Moate / Simon Compton                   +44 (0) 20 7250 1446 

NOTES TO EDITORS

About the Company

Established in 2010, Greenshields Agri Holdings plc farms over 3,500 acres of good quality arable farmland in the UK's northern grain belt, of which it owns 2,850 acres. The Group is principally engaged in the production of grain.

The farming operations of the Group are managed by the Farming Director, Peter Jackson, who has an established farming track record of over 30 years. The Group's farming operations target high production output of grain, employing high tech "precision farming" techniques within a commitment to a long term soil improvement program. The Group also seeks to benefit from economies of scale through the use of large modern equipment and operating through a series of strategically located "hubs" which allow farming services and equipment to be readily provided to surrounding areas using the equipment held at each hub.

Commercial operations including marketing of the grain are managed by the Group's Chief Executive Officer, Bill Boase, with 35 years of trading and management experience including 16 years at Cargill International.

The Group is a member of Grainco, the leading farmer-owned grain trading and marketing business in the North East of England and Scotland, which provides access to competitive input contracts for fertilisers, seed and sprays and premium price output contracts for the grain with Grainco's local big brand customers such as Quaker, Tennent Caledonian Breweries and Diageo.

The Group has grain storage capacity of 12,000 tonnes (10,000 tonnes of capacity being owned by the Group, with the remainder being contracted) which affords the Group a 22 month window in which to sell the grain so as to target optimal selling prices.

The Group seeks to source high yielding arable farmland at the best price, typically off market through George F White, one of the leading land agents in the Northern Grain Belt.

For further information, please go to www.greenshieldsagri.com

Board of Directors

Patrick Rupert Cottrell (Age 69), Non-Executive Chairman

Rupert Cottrell has extensive experience both of AIM companies and of agriculture, having been non-executive chairman of several AIM companies and one Official List company, and being involved in owning a family farming operation in East Anglia. He is currently non-executive chairman of Arricano Real Estate PLC, an AIM-listed Eastern European real estate developer. In addition he was formerly non-executive chairman of Carpathian plc, an AIM-listed Eastern European commercial property fund, and a non-executive director of the PFI Infrastructure Company plc, an AIM-listed infrastructure fund which was taken private in 2007. He was also non-executive chairman of Infrastructure India plc, an AIM-listed infrastructure fund, and of Diamond Circle Capital plc, listed on the Main Market of the London Stock Exchange. His background in financial services includes executive director positions at a number of London investment management firms and four years as a director of the Financial Intermediaries, Managers and Brokers Regulatory Association (FIMBRA), a regulator which is now part of the FCA. He is a fellow of the Chartered Securities Institute. Rupert was appointed as a Director of the Company on 9 October 2014.

William (Bill) Henry Boase (Age 57), Chief Executive Officer

Bill Boase spent 16 years with Cargill International, including positions as Head Corn Trader, Head Soybean Trader and Head of Ocean Transportation. He co-founded Greenshields Shipping, a successful shipping, trading and investment business in 1997, taking delivery of a newly built panamax bulk carrier in 1999. In 2010 Greenshields Shipping took the decision to alter its investment focus from mineral shipping to agriculture. Bill co-founded the Group in that year, and has been a Director of the Company since its incorporation.

Jay Charles Goodgal (Age 59), Vice Chairman

Jay Goodgal has over 29 years' experience investing in securities with a focus on the maritime transportation, logistics and commodity industries. He is Managing Director of Castalia Partners Limited and Managing Member of Castalia Advisors LLC investment management companies and founding shareholder of Greenshields Shipping, and in conjunction with Mr. Boase redirected that company's investment focus from mineral shipping to agriculture. He co-founded the Group and has been a Director of the Company since its incorporation. In addition to his role as Vice Chairman, he is responsible for business strategy and development.

Peter Alan Jackson (Age 55), Farming Director

Peter Jackson has built up a farming business in the Northern Grain Belt covering 5,000 acres in various locations up to 40 miles from his base in Ponteland. He has been contract farming for over 20 years. He was also a founding director of Tynegrain/GrainCo in 1983, becoming Vice Chair in 2003 and Chairman in 2011. Between 1998 and 2011 he was responsible for the operations of farms near Gdansk in Poland. He was a board member of the UK Government's Regional Development Agency from 2006 to 2012 with annual budget of GBP280 million, comprising European and UK funding, where he was a member of both the Regeneration Project and General Finance Committees. He is currently a member of the Policy Board of Northumberland County Council and a member of the national Local Government Association's Improvement and Innovation Board. Peter was appointed as a Director of the Company on 9 October 2014.

James David McKenna (Age 49), Finance Director

James McKenna has over 23 years' experience as a Chartered Accountant, working with KPMG before moving to Ethicon, a subsidiary of Johnson & Johnson. He has been involved in the shipping, investment and trading business since 1996 and since 1998 he has been the Finance Director of Greenshields Shipping and affiliated companies. James also became the Finance Director of the Group when it was founded in 2010, and has been a Director of the Company since its incorporation.

David Campbell (Age 63), Non - Executive

David Campbell was formerly Chairman and Chief Executive of DSG Insurance Services, a subsidiary of Dixons plc. Prior to that he was head of Willis plc's European captive management operations. He has previously been a director of a Managing Agency of Lloyds and Royal Skandia Life Assurance Ltd. As well as GAH, he is also non-executive director of a number of Isle of Man regulated insurance companies. David has been a Director of the Company since its incorporation.

Robert Richard Jones (Age 66), Non - Executive

Robert Jones is a director of Douglas Aviation (Isle of Man) Limited, a corporate services provider licensed by the Isle of Man FSC. Robert is currently director to a number of companies in the aviation and transport sector. He is a fellow of the Institute of Chartered Accountants in England and Wales. Robert has been a Director of the Company since its incorporation.

Portfolio Overview

 
 Property                       Acreage             Status 
-----------------------------  --------  ----------------- 
 Eshott, Northumberland              69   Owned and farmed 
 Harlow Hill, Northumberland        539   Owned and farmed 
 Spott Farm, East Lothian         1,512   Owned and farmed 
 Lemington, Berwickshire            739   Owned and farmed 
-----------------------------  --------  ----------------- 
 Total Owned                      2,859 
 East Lothian                       678        Farmed only 
-----------------------------  --------  ----------------- 
 Total                            3,537 
-----------------------------  --------  ----------------- 
 

Forward-looking statements

This announcement may include forward-looking statements regarding the Group's financial position, business strategy, plans and objectives of management for future operations or statements relating to expectations in relation to dividends. Forward-looking statements are sometimes identified by the use of forward-looking terminology such as "targets", "believes", "expects", "aims", "intends", "plans", "will", "may", "anticipates", "would", "could" or similar expressions or the negative thereof, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors beyond the Group's control that could cause the actual results, performance, achievements of or dividends paid by the Group to be materially different from actual results, performance or achievements, or dividend payments expressed or implied by such forward-looking statements. Such forward-looking statements are based on numerous assumptions regarding the Group's net asset value, present and future business strategies and income flows and the environment in which the Group will operate in the future.

These forward-looking statements speak only as of the date of this announcement. Save as required by law or the AIM Rules for Companies, each of the Group, Cairn Financial Advisers LLP ("Cairn") and Old Park Lane Capital plc ("Old Park Lane") expressly disclaim any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained herein to reflect any change in the Group's expectations with regard thereto, any new information or any change in events, conditions or circumstances on which any such statements are based, unless required to do so by law or any appropriate regulatory authority.

Important Notice

The contents of this announcement, which have been prepared and issued by, and are the sole responsibility of the Company, have been approved solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000 (as amended) ("FSMA") by Cairn Financial Advisers LLP, which is authorised and regulated by the Financial Conduct Authority.

Neither this announcement nor any copy of it may be taken or transmitted, directly or indirectly, into the United States, Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa or to any persons in any of those jurisdictions or any other jurisdiction where to do so would constitute a violation of the relevant securities laws of such jurisdiction.

This announcement does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any shares or other securities to any person in the United States or any other jurisdiction nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, or act as an inducement to enter into any contract or commitment whatsoever. The Placing and the distribution of this announcement and other information in connection with the Placing and Admission in certain jurisdictions may be restricted by law, and persons into whose possession this announcement, or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

The ordinary shares of the Company ("Ordinary Shares") have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act") or with any regulatory authority or under applicable securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, resold, pledged, delivered, distributed or transferred, directly or indirectly, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and otherwise in compliance with any applicable state and local securities laws. There will be no public offering of securities in the United States or elsewhere.

The Ordinary Shares have not been and will not be registered under the applicable securities laws of Australia, Canada, Japan, the Republic of Ireland or the Republic of South Africa and, subject to certain exceptions, may not be offered or sold, directly or indirectly, in Australia, Canada, Japan or the Republic of Ireland or the Republic of South Africa. There will be no public offering of securities in Australia, Canada, Japan, the Republic of Ireland, the Republic of South Africa or elsewhere.

This announcement is only addressed to, and directed at, persons in the United Kingdom who (i) are persons who have professional experience in matters relating to investments falling within Article 19(5) of the UK Financial Services and Markets Act 2000 (Financial Promotion) order 2005 (the "Order"), (ii) are persons who are high net worth entities falling within Articles 49(2) of the Order, and (iii) to persons to whom it may otherwise be lawful to communicate it to (all such persons being referred to as "relevant persons"). Any investment or investment activity to which this announcement relates is available only to relevant persons in the United Kingdom, and will be engaged in only with such persons. Other persons should not rely or act upon this announcement or any of its contents.

Any purchase or subscription of Ordinary Shares in the proposed Placing should be made solely on the basis of the information contained in the Admission Document to be issued by the Company in connection with Admission. None of the Company, Cairn, Old Park Lane or any of their respective affiliates, their respective directors, officers, partners, employees, advisers or agents or advisers or any other person, accepts any responsibility or liability whatsoever for, or makes any representation or warranty, express or implied, as to the truth, accuracy, completeness or fairness of the information or opinions contained in, in this announcement (or whether any information has been omitted from this announcement) or of any other information relating to the Company or its Group, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of this announcement or its contents, or otherwise arising in connection therewith. No reliance may or should be placed by any person for any purpose whatsoever on the information contained in this announcement or on its completeness, accuracy or fairness. The information in this announcement is subject to change and does not purport to be full or complete. None of the Company, Cairn or Old Park Lane undertakes to provide the recipient of this announcement with any additional information, or to update this announcement or to correct any inaccuracies, and the distribution of this announcement shall not be deemed to be any form of commitment on the part of the Company to proceed with the Placing, Admission or any transaction or arrangement referred to herein. This announcement has not been approved by any competent regulatory authority.

Cairn, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company and no one else in connection with the Placing and Admission, and will not regard any other person (whether or not a recipient of this announcement) as a client in relation to the Placing and Admission, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing, Admission or any transaction, arrangements or other matters referred to in this announcement.

Old Park Lane, which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company and no one else in connection with the Placing and Admission, and will not regard any other person (whether or not a recipient of this announcement) as a client in relation to the Placing and Admission, and will not be responsible to anyone other than the Company for providing the protections afforded to its clients or for providing advice in relation to the Placing, Admission or any transaction, arrangements or other matters referred to in this announcement.

Apart from the responsibilities and liabilities, if any, which may be imposed on Cairn or Old Park Lane by FSMA or the regulatory regime established thereunder, neither of Cairn or Old Park Lane accept any responsibility whatsoever, and makes no representation or warranty, express or implied, in relation to the contents of this announcement, including its accuracy, completeness or for any other statement made or purported to be made by it or on behalf of it, the Company, its directors or any other person, in connection with Admission or the Placing, and nothing in this announcement shall be relied upon as a promise or representation in this respect, whether as to the past or the future. Each of Cairn and Old Park Lane accordingly disclaim all and any liability whatsoever, whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of this announcement or any such statement.

The date of Admission may be influenced by factors such as market conditions. There is no guarantee that the Admission Document will be published or that the Placing and Admission will occur, and you not should base your financial decisions on the Company's intentions in relation to the Placing and Admission at this stage. Acquiring investments to which this announcement relates may expose an investor to a significant risk of losing all of the amount invested. The value of shares can decrease as well as increase. This announcement does not constitute a recommendation concerning the Placing. Persons considering investment in the Company should seek their own financial advice immediately from their stockbroker, solicitor, accountant or other independent adviser authorised under FSMA, who specialises in advising on the acquisition of shares and other securities, if you are in the United Kingdom, or any appropriately authorised person under applicable laws, if you are located in any other jurisdiction.

This information is provided by RNS

The company news service from the London Stock Exchange

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