MINNEAPOLIS, March 15, 2022 /CNW/ -
Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") a global
agricultural, energy and industrial products merchandising and
supply chain company, announced today that its wholly owned
subsidiary, Riverland Ag Corp. ("Riverland"), has entered into a
letter of intent to acquire Columbia Grain International's 50%
membership interest in Berthold Farmers Elevator, LLC, a grain
originator and merchandiser with locations in Berthold, N.D. and Carpio, N.D. ("BFE"). Riverland will pay cash
for the investment, coming from working capital and available debt
capacity. The other 50% membership interest in BFE is owned by
Berthold Farmers Elevator Company ("BFEC"), a farmer cooperative
also based in Berthold, N.D.
The letter of intent contains a binding purchase option
exercisable by Riverland through April 29,
2022, by which date the transaction is expected to
close.
"Becoming a joint venture owner with Berthold Farmers Elevator
Company advances our strategy to partner with growers and increase
origination of our core products," said Mr. Robert Day, President and Chief Executive
Officer at Ceres. "We look forward to connecting the hundreds of
growers who make up the co-op in Berthold with Ceres and Riverland's customers
and collaborating with all parties to bring solutions, starting
from the farmgate and ending with consumers in the U.S. and
internationally."
"Adding Riverland as a joint venture partner in Berthold Farmers
Elevator, LLC opens new and meaningful possibilities for our
growers" said Aaron Haaland of BFE's
board. "With Riverland and Ceres's expertise in managing railroad
programs and providing destination market access, Berthold Farmers
Elevator Company will be well positioned to serve the needs of its
growers and patrons for decades to come."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Ceres and its subsidiaries ("Ceres") add value across
agricultural, energy and industrial supply chains through efficient
sourcing, storing, transporting and marketing of high-quality
agricultural commodities, value-added products and raw materials.
Leveraging its network of commodity logistics centers and team of
industry experts, Ceres connects farmers to customers around the
world.
Ceres is headquartered in Golden
Valley, Minnesota, and together with its affiliated
companies, 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 has a 50% interest in Savage Riverport, LLC (a joint
venture with Consolidated Grain and Barge Co.), a 50% interest in
Farmers Grain, LLC (a joint venture with Farmer's Cooperative Grain
and Seed Association), 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 Berthold Farmers Elevator, LLC
(www.bertholdfarmers.com)
Established in 2002, BFE provides grain merchandising and
storage services to over 300 BFEC patrons and other growers across
a 4-county area.
For more information about Ceres, please visit
www.ceresglobalagcorp.com
Caution concerning forward-looking statements
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 acquisition
of Columbia Grain International's 50% membership interest in
Berthold Farmers Elevator, LLC. 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. The reader
is cautioned not to place undue reliance on forward-looking
information and Ceres does not undertake to update any
forward-looking statements; such statements speak only as of the
date made.
SOURCE Ceres Global Ag Corp.