- Deveron (FARM) has acquired a 67 per cent equity interest in A&L Canada Laboratories East
- A&L shareholders will receive $37.8 million in cash, $4.9 million in promissory notes and 13,688,182 common shares of Deveron
- The acquisition will provide Deveron’s growing customer base with access to some of the best unbiased information in the agriculture industry
- A&L is one of the largest soil and tissue laboratories in Canada
- Deveron is an agriculture technology company
- Deveron Corp. (FARM) is up 11.54 per cent, trading at C$0.435 per share
Deveron (FARM) has acquired a 67 per cent equity interest in A&L Canada Laboratories East, a Canadian soil health and plant tissue testing laboratory.
Deveron has an option to purchase the remaining 33 per cent of A&L following the three-year anniversary of the closing of the acquisition.
A&L shareholders will receive $37.8 million in cash, $4.9 million in promissory notes and 13,688,182 common shares of Deveron.
Deveron financed the cash component of the purchase price through a $28.3 million credit facility provided by Toronto-Dominion Bank, a $10 million non-brokered private placement and the company’s treasury cash.
“We are excited to have completed this transaction,” commented Deveron’s President and CEO, David MacMillan.
“It gives our growing customer base access to some of the best unbiased information in the agriculture industry which we believe will only continue to become more relevant as farmers and agribusiness leaders focus more on independent scientific information to make the best decisions on their farms to improve yields, reduce costs and improve outcomes. From a shareholder perspective, this transaction accelerates our development and allows Deveron to focus not only on continued revenue growth, but also profitability and positive cash flow.”
The company has obtained the necessary approvals to close the acquisition, including receipt of final acceptance from the TSX Venture Exchange.
A&L is one of the largest soil and tissue laboratories in Canada. As at December 31, 2021, A&L had total unaudited assets of $19,835,475 and total unaudited liabilities of $6,747,983.
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 Corp. (FARM) is up 11.54 per cent, trading at C$0.435 per share.
