- Deveron expands United States footprint, increasing acres under management by 400,000 annually
- Agronomic Solutions 2020 unaudited revenue of US $1.54M and EBITDA of US $430k
Toronto, Ontario–(Newsfile Corp. – September 9, 2021) – Deveron Corp. (TSXV: FARM) (“Deveron” or the “Company”), a leading agriculture digital services and insights provider in North America, is pleased to announce it has entered into a definitive agreement dated September 8, 2021 (the “Definitive Agreement“) to acquire the assets of Agronomic Solutions, LLC. (“Agronomic Solutions“), a leading digital agronomy company, that services Iowa, Nebraska, Missouri, Minnesota, Illinois and Kansas (the “Acquisition“). Agronomic Solutions provides soil sampling services and digital management across 400,000 acres of customers annually. Agronomic Solutions’ unaudited 2020 revenue was US$1.54M and EBITDA of US$430k. This acquisition adds another leading local agriculture service provider in key jurisdictions in the United States, accelerating the Company’s growth strategy by increasing acres under management.
Brandy Hodges, an original founder of Agronomic Solutions, commented, “Nick and I are so excited to have Agronomic Solutions join the Deveron family. Deveron’s end-to-end soil health solutions and turn-key insights offer agribusinesses the opportunity to drive value through increasing yields while reducing cost. We are excited to utilize these tools to facilitate accelerated growth as Agronomic Solutions continues to expand in our territory.”
“Agronomic Solutions is a remarkable leader in soil sampling and soil data analytics in their operating territories. The trust that Brandy and Nick have built with their customer base is very impressive and something we look to build upon as they grow within the company,” said David MacMillan, Deveron’s President and CEO. “Adding Agronomic Solutions to Deveron’s growing footprint is an integral step towards our vision of being North America’s leader in soil health data and insights. We look forward to working with Brandy, Nick and the rest of the Agronomic Solutions team to leverage Deveron’s end-to-end soil health solutions to increase their influence across Mid-Western United States.”
As consideration for the Acquisition, Deveron has agreed to: (i) pay Agronomic Solutions an initial cash payment of US$425,000 upon signing of the Definitive Agreement and an aggregate of US$425,000 on each of the first two anniversaries of the signing of the Definitive Agreement; and (ii) issue such number of common shares in the capital of the Company (the “Common Shares“) equal to US$141,667 at a price of $0.68 per Common Share upon receipt of the approval of the TSX Venture Exchange (the “TSXV“) and an additional number of Common Shares equal to US$141,667 at a price of $0.68 per Common Share on each of the first two anniversaries of the signing of the Definitive Agreement.
The completion of the transaction remains subject to all regulatory and other approvals, including the approval of the TSX Venture Exchange.
About Agronomic Solutions: Agronomic Solutions is a company that specializes in all types of precision ag services. We work with coops, retailers, seed businesses, growers, landowners, and farm managers providing them with support and assistance in choosing which of our services best fit their needs. We do not sell seed, fertilizer or other ag inputs so as to not compete with our customers. Our staff consists of Certified Crop Advisors who are qualified to offer unbiased solutions and services that are tailored to the client.
About Deveron: 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. The company employs a digital process that leverages data collected on farms across North America to drive unbiased interpretation of production decisions, ultimately recommending how to optimize input use. Our team of agronomists and data scientists build products that recommend ways to better manage fertilizer, seed, fungicide, and other farm inputs. Additionally, we have a national network of data technicians that are deployed to collect various types of farm data, from soil to drone. Our geographic focus is the US and Canada where 1 billion acres are actively farmed annually.
For more information, please visit www.deveronuas.com.
President & CEO Deveron Corp.
416-367-4571 ext. 221
“Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.”
This news release includes certain “forward-looking statements” within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various degrees of risk. Forward-looking statements reflect management’s current views with respect to possible future events and conditions and, by their nature, are based on management’s beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company’s actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the world-wide price of agricultural commodities, general market conditions, risks inherent in agriculture, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward looking statements as well as the various risks and uncertainties we face are described in greater detail in the “Risk Factors” section of our annual and interim Management’s Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedar.com. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward looking statements.
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