- Deveron Corp. (FARM) has entered into a definitive agreement to acquire the assets of Stealth Ag, Inc.
- Stealth Ag provides soil data services and agronomic solutions in Minnesota and Iowa
- This acquisition will contribute to Deveron’s growing North American focused service network
- Deveron Corp is an agriculture technology company focused on data acquisition and analysis that helps farmers reduce costs and increase yields
- Deveron Corp. (FARM) opened trading at C$0.86 per share
Deveron Corp. (FARM) has entered into a definitive agreement to acquire the assets of Stealth Ag, Inc.
Stealth Ag provides soil sampling services and digital management across 800,000 acres of customers on varying levels of annual engagement. Stealth Ag’s unaudited 2020 revenue was US$0.7M and EBITDA of US $0.2M.
This acquisition further accelerates Deveron’s strategy of increasing access to leading, local agriculture service providers in the United States.
Brent Hjelmeland, CEO of Stealth Ag, commented,
“I couldn’t be more excited to have Stealth Ag join the Deveron team. Deveron’s turn-key analytics and technology solutions can help agribusinesses focus on the customer’s needs to improve yield and reduce costs. We look forward to leveraging Deveron’s technology to further facilitate Stealth’s current growth profile as we continue to expand our influence in Minnesota and Iowa.”
“Stealth Ag is a tremendous leader in soil data services and agronomic solutions in Minnesota and Iowa,” said David MacMillan, Deveron’s President and CEO.
“With Stealth we are acquiring local leaders, a powerful client base and a significant increase in service density capabilities for our growing, North American focused service network. We look forward to working with Brent and his team to leverage Deveron’s technology stack to increase their influence across Minnesota and Iowa’s combined 66 million acres of farmable land. At the same time, we also see this as an accretive opportunity for our customers looking for reliable and standardized data services increasing our capabilities of providing one-vendor solutions to our customers that have interests across multiple states in the US.”
Deveron has agreed to pay Stealth Ag an initial cash payment of US$800,000 upon signing of the agreement and an aggregate of US$150,000 on each of the first two anniversaries of the signing of the Definitive Agreement.
Stealth Ag will also receive US$175,000 worth of Deveron’s common shares at a price of $0.86 and an additional US$187,500 worth of shares on each of the first two anniversaries of the signing of the agreement.
Deveron will pay First Southeast Bank US $106,525.81, representing the amount due by Stealth Ag to the Lender.
Under the terms of the Acquisition if certain milestones are met, Deveron has agreed to pay an additional US$270,000 as follows:
- US$40,000 in cash and $40,000 in common shares if Stealth Ag exceeds gross revenue of US$1,000,000 in the first 12 months following the execution of the agreement.
- US$50,000 in cash and $50,000 in common shares if Stealth Ag exceeds gross revenue for the 12 months following the first earn-out period by at least US$250,000.
- Issue US$90,000 in common shares in the event that Stealth Ag adds 400,000 unique acres to Farm Dog during the 24-month period following the execution of the agreement.
The completion of the transaction remains subject to all regulatory and other approvals, including the approval of the TSX Venture Exchange.
Stealth Ag is an independent agronomy company. With locations in Minnesota and Iowa, Stealth Ag has spent the last ten years integrating innovative practices with practical agronomy, all to assist their clients in the growth of their soil fertility and yield management programs.
Deveron is an agriculture technology company that uses data and insights to help farmers and large agriculture enterprises increase yields, reduce costs and improve farm outcomes. Deveron’s focus is the US and Canada where1 billion acres of farmland are actively farmed annually.
Deveron Corp. (FARM) opened trading at C$0.86 per share.