Farmers want majority ownership of CWB
SASKATOON — Farmers of North America (“FNA”), a Saskatoon based organization representing more than 10,000 farmers across Canada, today announced that as of Tuesday, October 14, 2014, FNA has received $45 million in non-binding expressions of interest from farmers to build a new grain handling business integrated with fertilizer supply and distribution (the “Genesis Project”). FNA has created Genesis Grain & Fertilizer Limited Partnership (“Genesis LP”) to be the vehicle through which the Genesis Project will be developed.
While the expressions of interest are non-binding, FNA spokesperson Bob Friesen said that, given the short time in which farmers have had to consider the Genesis Project, the $45 million constitutes an historic effort.
“In the first week farmers completed expressions of interest exceeding $10 million,” Friesen said, “In the second week it was over $20 million; and now we have passed $45 million, all while farmers are completely engaged in the harvest.”
An Offering Memorandum dated October 10, 2014 in connection with the offering of limited partnership units in Genesis LP (the “Offering”) was finalized Friday evening. Laurentian Bank Securities Inc. has agreed to act as Agent in connection with the Offering.
The Offering is only available to “accredited investors” as that term is defined in applicable securities laws and to “farmers” as that term is defined in the limited partnership agreement governing Genesis LP. A “farmer” who is also an “accredited investor” may view the Offering Memorandum and supporting documents at www.fna.ca/grain. Visitors to the website will be asked to complete a short questionnaire to ensure they meet both the definition of “accredited investor” and “farmer.”
Part of the Genesis project has always included Genesis LP’s desire to acquire the CWB. Friesen noted the CWB told reporters last week that the timeline for privatization of the CWB has been accelerated.
“If FNA and Laurentian Bank Securities were able to market this opportunity to farmers for an extended period of time, say two months, then FNA feels confident that it could raise an amount equal to the value of the CWB,” Bob Friesen said. Friesen went on to say “I want to emphasize that most farmers have not had the ability to turn their attention to the Genesis project, including the potential acquisition of the CWB because of the harvest. If the privatization of the CWB has been accelerated such that another entity acquires it before Genesis can raise the necessary funds, this once in a lifetime opportunity for Canadian farmers will be lost forever.”
FNA’s view has always been that Canadian farmers should get the first opportunity to acquire the CWB. By giving Genesis LP a period of exclusivity, it would have the required time to raise its required funds and negotiate a suitable transaction with the CWB and the Government of Canada.
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Farmers of North America is a member based farm business alliance with the single mission of “Maximizing Farm Profitability.”
For more information, contact:
Bob Friesen, VP Government Relations
Tel: (613) 230-2222
Cell: (613) 852-9711