- Deveron (FARM) has signed a letter of intent (LOI) to acquire Frontier Labs for US$2.2 million in cash and shares
- Frontier Labs is an Iowa-based soil lab and agronomy company
- The acquisition would increase Deveron’s soil lab capacity by 200,000 samples annually and add 2021 unaudited revenue of US$2.1 million and EBITDA of US$450,000
- Deveron is an agriculture technology company that uses data to help farmers and large agriculture enterprises increase yields, reduce costs and improve outcomes
- Deveron (FARM) closed up by 3.85 per cent, trading at $0.54 per share
Deveron (FARM) has signed an LOI to acquire Frontier Labs.
Frontier Labs is an Iowa-based soil lab and agronomy company servicing Iowa and Minnesota. The company influences 320,000 acres annually through its soil lab and soil sampling services.
Pursuant to the LOI, Deveron will pay US$825,000 in cash upon completion of the transaction and US$412,500 on each of the first two anniversaries following the closing. It will also issue US$275,000 in common shares upon approval of the TSXV and US$137,500 in common shares on each of the first two anniversaries following the closing.
The acquisition is in line with Deveron’s strategy to vertically integrate the soil collection and analysis process while adding important local agricultural relationships.
Frontier Labs would increase Deveron’s soil lab capacity by 200,000 samples annually and add 2021 unaudited revenue of US$2.1 million and EBITDA of US$450,000.
Deveron will partially fund the acquisition through a non-brokered private placement with Coeli Circulus, a European long-only impact fund. The company will issue 3,000,000 common shares priced at C$0.50 for gross proceeds of C$1,500,000.
The transaction and the offering are scheduled to close on or about September 30, 2022.
“Frontier marks the fourth soil lab transaction in Deveron’s growing, vertically integrated soil lab network and creates important regional distribution in the U.S. midwest,” stated David MacMillan, President and CEO of Deveron. “This will provide Deveron with a soil lab hub in Iowa to support its boots-on-the-ground network of agronomists and soil technicians.”
“With the increased capacity across our soil lab network, Deveron can continue to execute on its mission to help local agriculture achieve excellence using impartial data,” he added.
Deveron is an agriculture technology company that uses data to help farmers and large agriculture enterprises increase yields, reduce costs and improve outcomes.
Deveron (FARM) closed up by 3.85 per cent, trading at $0.54 per share.
