AG Growth Income Fund
TSX : AFN.UN

AG Growth Income Fund

September 12, 2007 15:09 ET

Ag Growth Income Fund Announces $45 Million Bought Deal Equity Financing

WINNIPEG, MANITOBA--(Marketwire - Sept. 12, 2007) -

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

Ag Growth Income Fund (TSX:AFN.UN) ("Ag Growth") today announced it has entered into an agreement to sell 1,730,000 Trust Units at a price of $26.00 per Trust Unit to raise gross proceeds of approximately $45 million on a bought deal basis. The underwriting syndicate is led by TD Securities Inc. and includes Wellington West Capital Markets Inc., CIBC World Markets Inc. and PI Financial Corp. (collectively, 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 the same offering price. If the Over-Allotment Option is fully exercised, the total gross proceeds to Ag Growth will be approximately $50 million. The offering will be made by way of a short form prospectus in all of the provinces of Canada (except Quebec), and is expected to close on or about October 2, 2007, subject to regulatory approvals.

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.

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