Ag Growth Announces Approximately $60 Million Bought Deal Equity Financing

WINNIPEG, MANITOBA--(Marketwired - Jan. 26, 2017) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES

Ag Growth International Inc. (TSX:AFN) ("AGI" or the "Company") today announced it has entered into an agreement with a syndicate of underwriters led by CIBC Capital Markets, National Bank Financial Inc. and TD Securities Inc. (the "Underwriters"), pursuant to which AGI will issue on a "bought deal" basis, 1,100,000 common shares ("Common Shares") at a price of $55.10 per share to raise gross proceeds of approximately $60 million (the "Offering"). AGI has also granted the Underwriters an Over-Allotment Option, exercisable in whole or in part for a period expiring 30 days following closing, to purchase up to an additional 165,000 Common Shares at the same offering price. If the Over-Allotment Option is fully exercised, the total gross proceeds to AGI will be approximately $70 million.

A preliminary short form prospectus qualifying the distribution of the Common Shares will be filed with the securities regulatory authorities in each of the provinces of Canada (other than Quebec). Closing of the Offering is expected to occur on or about February 15, 2017. The Offering is subject to normal regulatory approvals, including approval of the Toronto Stock Exchange.

The net proceeds of the offering will be used to repay outstanding indebtedness, to pursue potential acquisition opportunities and for working capital and general corporate purposes.

The Common Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements thereof. This news release shall not constitute an offer to sell, or the solicitation of any offer to buy, nor shall there be any sale of Common Shares in any province, state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such province, state or jurisdiction.

Company Profile

Ag Growth International Inc. is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories, grain aeration equipment and grain drying systems. AGI has manufacturing facilities in Canada, the United States, Italy, the United Kingdom and Finland, and distributes its products globally.

Forward-Looking Statements

This press release contains certain forward-looking statements ("forward-looking statements") within the meaning of applicable Canadian securities laws. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect", "may", "will", "project", "should" or similar words suggesting future outcomes. In particular, this press release includes forward-looking statements relating to the proposed timing of completion of the offering and the anticipated use of the net proceeds of the offering.

These statements are based on current expectations that involve a number of risks and uncertainties which could cause actual results to differ from those anticipated. These risks include, but are not limited to, the failure or delay in satisfying any of the conditions to the completion of the offering. Additional information on these and other factors that could affect AGI's operations, financial results or dividend payments are included in AGI's annual information form and other reports on file with Canadian securities regulatory authorities which can be accessed through the SEDAR website at www.sedar.com. AGI assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event AGI does update any forward-looking statement, no inference should be made that it will make additional updates with respect to that statement, related matters, or any other forward-looking statement.