AG Growth Income Fund
TSX : AFN.UN

AG Growth Income Fund

October 02, 2007 08:55 ET

Ag Growth Income Fund Completes $45 Million Bought Deal Financing

WINNIPEG, MANITOBA--(Marketwire - Oct. 2, 2007) -

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

Ag Growth Income Fund (TSX:AFN.UN) ("Ag Growth") is pleased to announce that it has completed its previously announced bought deal equity financing and today has issued an aggregate of 1,730,000 Trust Units at a price of $26.00 per Trust Unit for total gross proceeds of $44,980,000.

The underwriting syndicate was led by TD Securities Inc. and included Wellington West Capital Markets Inc., CIBC World Markets Inc. and PI Financial Corp. (the "Underwriters").

Ag Growth has also granted the Underwriters an over-allotment option, exercisable in whole or in part for a period of 30 days following closing, to purchase up to an additional 193,000 Trust Units at a price of $26.00 per Trust Unit.

The net proceeds of the offering will be used by Ag Growth to repay a portion of the outstanding indebtedness of Ag Growth's subsidiaries.

This news release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Trust Units being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Trust Units may not be offered or sold in the United States except pursuant to applicable exemptions from registration.

About Ag Growth Income Fund

Ag Growth is a leading manufacturer of portable and stationary grain handling, storage and conditioning equipment, including augers, belt conveyors, grain storage bins, grain handling accessories and grain aeration equipment. Ag Growth's sales, marketing and distribution system is comprised of approximately 1,400 dealers and distributors that distribute product in 48 states, nine provinces and overseas.

Forward-Looking Statements

The statements contained in this news release that are forward-looking are based on current expectations, and are subject to a number of uncertainties and risks, and actual results may differ materially. These uncertainties and risks include, but are not limited to, the dependence of Ag Growth Income Fund on the operations and assets currently owned by Ag Growth Industries Limited Partnership, the degree to which Ag Growth Industries Limited Partnership and its affiliates are leveraged, the fact that cash distributions are not guaranteed and will fluctuate with Ag Growth Industries Limited Partnership's financial performance, dilution, restrictions on potential future growth, the risk of unitholder liability, competitive pressures (including price competition), changes in market activity, the cyclicality of the farm equipment industry, seasonality of the business, poor weather conditions, international operations and foreign currency fluctuations, legal proceedings, commodity price and raw material exposure, dependence on key personnel, and environmental, health and safety and other regulatory requirements. Further information about these and other risks and uncertainties can be found in the disclosure documents filed by Ag Growth Income Fund with the securities regulatory authorities, available at www.sedar.com.

Contact Information

  • Ag Growth Income Fund
    Steve Sommerfeld
    Chief Financial Officer
    (204) 489-1855
    Email: steve@aggrowth.com