Company Website: https://aggrowth.com
WINNIPEG, Manitoba -- (Business Wire)

Ag Growth International Inc. (“AGI” or the “Company”) today provided further details on its capital strategy, ongoing balance sheet improvement initiatives, strategic review process, and overall outlook.

As AGI enters 2027, the Company is seeing positive market signals across many of its core businesses which support increasing confidence in its outlook. Farm markets have strengthened with a notable pick-up in order intake over recent months and Commercial quoting activity is rising across key global regions. Overall, AGI continues to benefit from leading market positions across a range of geographies including North America, EMEA, India, and Brazil. Combined with more than $30 million of expected annualized cost savings and approximately $50 million of identified surplus real estate monetization opportunities, management believes AGI is well positioned to improve earnings, strengthen cash flow, and accelerate balance sheet deleveraging.

AGI's capital strategy is focused on reducing debt and proactively addressing upcoming maturities. The plan combines improved operating cash generation, structural cost reductions, and the monetization of non-core assets, with the objective of materially reducing leverage and strengthening the Company's balance sheet.

Capital Structure & Operational Actions Underway

• Covenant Flexibility: With the strong support of its banking partners, AGI has secured covenant relief under its senior credit facilities through the second quarter of 2027, providing the Company additional operating and execution flexibility as it advances various deleveraging initiatives. AGI’s senior credit facility extends to 2030, providing an important foundation of committed financing.
• 2026 Debentures: As previously announced, AGI has proposed amending the terms of its $85 million Third Series 5.25% senior subordinated unsecured debentures (the "Debentures") by extending the maturity date from December 31, 2026 to December 31, 2030, and increasing the annual coupon from 5.25% to 9.00%, among other amendments (the “Debenture Amendments”). AGI will seek approval for the Debenture Amendments at a meeting of the holders of the Debentures to be held on October 28, 2026 (the “Meeting”). Debenture holder approval requires (i) a quorum representing at least 25% of the outstanding principal amount of the Debentures and (ii) the affirmative vote of holders representing at least 66⅔% of the principal amount represented at the meeting, in person or by proxy. AGI will provide the required notice, circular, and proxy materials to holders and the debenture trustee in advance of the Meeting. The Debenture Amendments are also subject to Toronto Stock Exchange approval.
• Excess Real Estate: Approximately $50 million of excess, non-core real estate has been identified for monetization, with disposition processes planned or underway. Net proceeds are expected to be directed primarily toward debt reduction with transactions anticipated to close through the end of 2026 and into the first half of 2027.
• Additional Non-core Asset Sales: The real estate program is one component of a broader non-core asset monetization initiative and does not include potential proceeds from other non-core businesses or assets currently being evaluated by the Company and the Board’s Strategic Review Committee (the “SRC”). Management is focused on using internally generated cash and proceeds from non-core asset monetization to reduce senior indebtedness and progressively strengthen the balance sheet.
• 2027 Maturities: AGI is actively managing its 2027 convertible debenture maturities well in advance of their respective due dates, with all options being reviewed and a bias towards finding a strategic financing solution to efficiently address both maturities.
• Structural Cost Savings: AGI is implementing structural cost reductions expected to deliver more than $30 million of annualized savings. To date, these actions include the closure of the Company’s Naperville office, restructuring of underperforming North American business units, and an overhaul of the senior executive team, among other actions.

Management believes AGI’s underlying operating business, global market positions, and cash-generation potential provide a substantial asset base from which to continue improving the Company’s capital structure. The recently announced 2026 Debenture Amendment is one element of a phased debt management plan. Management is focused on using internally generated cash and proceeds from non-core asset monetizations to progressively strengthen the balance sheet. The Company is confident that it has the sufficient time and tools to address the totality of its maturity profile.

Review of Strategic Alternatives

As previously announced, the Company formed the SRC to oversee a formal review of strategic alternatives available to the Company to maximize shareholder value. Earlier this month, the SRC formally engaged CIBC Capital Markets and BofA Securities as financial advisors to assist in the evaluation of available alternatives and execution of value-maximizing strategies including, but not limited to, proactively refinancing the Company’s 2027 convertible debenture maturities. The covenant relief and other balance sheet optimization initiatives underway are expected to provide AGI and its financial advisors with sufficient flexibility and time to undertake a thorough review of all available strategic alternatives with the objective of maximizing value for shareholders.

AGI Company Profile

AGI is a leading provider of equipment and solutions that support the efficient storage, handling, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its products worldwide.

The TSX has neither approved nor disapproved of the information contained herein.

FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements and information [collectively, “forward-looking information”] within the meaning of applicable securities laws that reflect our expectations regarding the future growth, results of operations, performance, debt profile, business prospects, and opportunities of the Company. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information. Forward-looking information involves known or unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information. Undue reliance should not be placed on forward-looking information, as there can be no assurance that the plans, intentions or expectations upon which it is based will occur. In particular, the forward-looking information in this press release includes information relating to: AGI's capital strategy, liquidity, and ongoing balance-sheet improvement initiatives; AGI's improving operating performance and increasing confidence in its outlook; the strength of farm markets; the benefits of AGI's position in applicable markets; expected cost savings and proceeds from asset monetization opportunities; AGI's position to improve earnings, strengthen cash flow, and accelerate balance sheet deleveraging; AGI's focus on reducing debt, enhancing liquidity, and proactively addressing upcoming maturities; covenant relief under the Company's senior credit facilities and the terms and timing thereof; the disposition of non-core real estate assets and the proceeds, terms and timing of such dispositions; the disposition of other non-core assets or businesses and the timing and proceeds thereof; the use of proceeds of dispositions and the timing thereof; the impact of the Company's financial and banking advisors on the Company's ability to deleverage; the form and timing of refinancing of the Company's convertible debentures maturing in 2027 and possible financing partners; the cost savings and timing as a result of structural cost reductions; the proposed extension and amendment of the Company's debentures maturing in 2026; the Company's phased debt management plan; the Company's ability to address its maturity profile and the timing thereof; the Company's ability to improve its capital structure, including as a result of its underlying operating businesses, global market positions and cash-generation potential; and the Company's ability to reduce its debt and the timing thereof.

Such forward-looking information reflects our current beliefs and is based on information currently available to us, including certain key expectations and assumptions. Forward-looking information involves significant risks and uncertainties. A number of factors could cause actual results to differ materially from results discussed in the forward-looking information. These assumptions, risks and uncertainties include but are not limited to the following: the duration and impact of tariffs that are currently or may be brought into effect on goods exported from or imported into Canada; anticipated crop yields and production in our market areas; anticipated financial performance; future debt levels; business prospects and strategies; product and input pricing; the scope, nature, timing and cost of satisfying our warranty obligations or otherwise; regulatory developments; tax laws; the sufficiency of budgeted capital expenditures in carrying out planned activities; currency exchange rates, inflation rates and interest rates; the cost of materials, labour and services and the impact of inflation rates and/or supply chain disruptions and/or labour activity thereon; the impact of competition; the general stability of the economic and regulatory environments in which the Company operates; the timely receipt of any required regulatory and third party approvals; the ability of the Company to obtain and retain qualified staff and services in a timely and cost efficient manner; that our dividend will remain suspended; the ability of the Company to obtain financing on acceptable terms; the ability of the Company to complete dispositions on terms and timeline acceptable to the Company or at all; the Company's ability to execute on its capital strategy; the regulatory framework in the jurisdictions in which the Company operates; the ability of the Company to successfully market its products and services; that a pandemic or other public health emergency will not have a material impact on our business, operations, and financial results going forward; acts and omissions of third parties and the ability of the Company to obtain approval for, and complete, the amendments to the Debentures; the Company's ability to maintain its covenant flexibility; and other risks and uncertainties identified under the headings “Risks and Uncertainties”, “Forward-Looking Information” and “Financial Outlook” in the Company's most recent management's discussion and analysis and in the Company's most recently filed Annual Information Form, which are available on the Company's SEDAR+ profile at www.sedarplus.com.

The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. The forward-looking information included in this press release is made as of the date hereof and the Company undertakes no obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless so required by applicable securities laws.​

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Contacts:

For More Information Contact:
Paul Brisebois
President and CEO (204.489.1855)
investor-relations@aggrowth.com

Source: Ag Growth International Inc.