AG Growth Income Fund
TSX : AFN.UN

AG Growth Income Fund

June 03, 2009 18:26 ET

Ag Growth Income Fund Announces Conversion to Ag Growth International Inc.

WINNIPEG, MANITOBA--(Marketwire - June 3, 2009) - Ag Growth Income Fund (TSX:AFN.UN) (the "Fund") is pleased to announce the completion of the conversion of the Fund to a corporation named "Ag Growth International Inc." (the "Conversion") pursuant to a plan of arrangement under the Canada Business Corporations Act.

Effective upon the closing of the Conversion, Ag Growth International Inc. ("Ag Growth International") now directly and indirectly owns and operates the businesses of the Fund and its subsidiaries and the existing trustees and management of the Fund are the Ag Growth International board and management. As successor to the business of the Fund, Ag Growth International 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.

The Conversion was approved at the special meeting of holders ("Securityholders") of trust units ("Units") of the Fund and exchangeable limited partnership units ("Exchangeable Units") of AGX Holdings Limited Partnership held on June 3, 2009, with over 96% of the votes cast by Securityholders being in favour of the Conversion. On June 3, 2009, the Ontario Superior Court of Justice granted the final order required in connection with the Conversion.

Pursuant to the Conversion, Securityholders received one common share ("AGII Common Share") of Ag Growth International for each Unit or Exchangeable Unit. After giving effect to the Conversion, there are 12,937,588 AGII Common Shares issued and outstanding.

Trading of the AGII Common Shares on the Toronto Stock Exchange (the "TSX") is expected to commence on or about June 8, 2009 under the symbol "AFN". Until such time, the trust units of the Fund will continue trading on the TSX.

Ag Growth International intends to pay monthly dividends, with the first monthly dividend presently expected to be $0.17 per AGII Common Share payable on July 30, 2009 to shareholders of record on June 30, 2009.

About Ag Growth International

Ag Growth International 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 International'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

This press release contains certain forward-looking statements and forward-looking information ("forward-looking information") within the meaning of applicable Canadian securities laws. Forward-looking information is 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 information relating to dividends and the payment thereof, and listing of the AGII Common Shares on the TSX. Ag Growth International believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon.

Forward-looking information is based on various assumptions. Those assumptions are based on information currently available to Ag Growth International, including information obtained from third party sources and include the historic performance of Ag Growth International's businesses, current economic trends, utilization of tax basis, currency, exchange and interest rates, trading data and cost estimates. You are cautioned that the preceding list of assumptions is not exhaustive.

Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Ag Growth International's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking information. These risks and uncertainties include but are not limited to the risks identified in the Fund's Annual Information Form under the heading "Risk Factors" and the risks associated with the availability and amount of Ag Growth International's tax basis. Without limitation, the amount of cash dividends to be paid on the AGII Common Shares, if any, will be subject to the discretion of the Ag Growth International board of directors and may vary depending on a variety of factors, including the prevailing economic and competitive environment, results of operations, fluctuations in working capital, Ag Growth International's ability to raise capital, the amount of capital expenditures and other conditions existing from time to time. There can be no guarantee that Ag Growth International will maintain its current dividend policy. Any forward-looking information is made as of the date hereof and, except as required by law, Ag Growth International assumes no obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.

Contact Information

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