- Deveron Corp. (FARM) enters into a definitive agreement to acquire a 67 per cent equity interest in A&L Canada Laboratories East Inc. for $50.3 million
- The $7.5 million in common shares will be distributed to Greg Patterson’s company
- He is expected to be President, CEO and Director of A&L
- Deveron has the option to purchase the remaining 33 per cent three years after closing
- Deveron expects to realize numerous revenue and cost synergies within two years
- Deveron Corp. (FARM) is down 14.54 per cent trading at $0.47 per share as of 12:06 p.m. ET
Deveron Corp. (FARM) has signed an agreement to acquire a 67 per cent equity interest in A&L Canada Laboratories East for $50.3 million.
Total consideration payable to the vendor shareholders includes $42.8 million in cash and $7.5 million in the company’s common shares.
Deveron has the option to purchase the remaining 33 per cent three years after the closing.
The $7.5 million in common shares will be distributed to a company controlled by Greg Patterson, one of the vendor shareholders who is expected to continue as President, CEO and Director of A&L.
Deveron has the option to purchase the remaining 33 per cent three years after the closing
Deveron Corp is an agriculture technology company that uses data and insights to help farmers and agriculture enterprises increase yields, reduce costs, and improve farm outcomes. A&L is a technology company focused on sustainable development for industries including agriculture, environmental, food, and pharma.
20,000 customers will be added to Deveron’s customer base across key Canadian agriculture markets and over 435,000 annual soil samples.
Deveron expects to realize numerous revenue and cost synergies within two years of the acquisition’s close.
In connection with the acquisition, Deveron will file a preliminary prospectus supplement in connection with a marketed public offering of subscription receipts for gross proceeds of approximately $20 million.
Each subscription receipt represents the right to receive one unit consisting of one common share and one-half of one common share purchase warrant of Deveron. Each warrant will have an exercise price to be determined in the context of the market and shall be exercisable for two years from closing.
Additionally, the company will grant the participating underwriters an option to purchase up to an additional number of subscription receipts equal to 15 per cent of the number of subscription receipts sold in the offering to cover over-allotments, and for market stabilization purposes.
Deveron Corp. (FARM) is down 14.54 per cent trading at $0.47 per share as of 12:06 p.m. ET.