Mr. Paul Householder reports

AGI ANNOUNCES STRUCTURE TO SUPPORT FINANCING FOR BRAZILIAN COMMERCIAL CUSTOMERS

Ag Growth International Inc. has established a new financing structure to support qualified local commercial customers on large-scale grain-storage and grain-handling projects supplied by AGI Brazil.

The arrangement is set up as an investment fund, a commonly used financing structure leveraged by a variety of industries throughout Brazil. The fund is designed to monetize eligible long-term receivables arising from AGI Brazil's commercial projects. The first tranche of the fund will have a target capacity of up to approximately 1.2 billion real, equivalent to roughly $300-million (Canadian), with room for further expansion of the total size of the fund in the future as conditions warrant. This fund is new and separate from the fund initiative previously announced in early 2024 which targeted farm-segment customers in Brazil.

"Our strategic focus on developing the international commercial market continues to be a key priority for AGI, with activity in Brazil leading the way," commented Paul Householder, chief executive officer and president of AGI. "With expanded capabilities, products and resources, we've seen a significant increase in the size and scale of projects AGI has bid on, won and delivered in Brazil. The fund structure enables AGI to participate in a wider variety of projects and creates an additional competitive advantage for us within the Brazilian market. Over all, today's announcement serves to help facilitate the build-out of much needed grain storage and handling infrastructure in this vital agricultural region."

"With the new fund structure now set up, we will begin transferring long-term receivables for projects AGI Brazil has financed up to this point," noted Jim Rudyk, chief financial officer of AGI. "Over the next few months and subject to completing the required administrative and regulatory steps, we anticipate being able to monetize approximately CAD $100-million in long-term receivables using the fund structure, with cash proceeds to be immediately applied to our balance sheet. With approximately $200-million of remaining capacity in this new commercial focused investment fund, we will be able to streamline the financing process much more efficiently for future projects, all while optimizing AGI's working capital position. This differentiated capability provides value to our customers and enables AGI to more effectively support and deliver large scale projects all across Brazil."

Company profile

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

We seek Safe Harbor.