Ag Growth International Inc.

Ag Growth International Inc.

December 08, 2009 14:33 ET

Ag Growth International Inc. Announces Normal Course Issuer Bid for Its Common Shares

WINNIPEG, MANITOBA--(Marketwire - Dec. 8, 2009) - Ag Growth International Inc. (TSX:AFN) ("Ag Growth") announced today that the Toronto Stock Exchange ("TSX") has accepted Ag Growth's Notice of Intention to make a Normal Course Issuer Bid (the "Bid") to purchase for cancellation, as Ag Growth considers advisable from time to time, up to a maximum of 1,272,423 of Ag Growth's issued and outstanding common shares ("Common Shares"). Purchases of Common Shares will be made on the open market through the facilities of the TSX. As at the date hereof there are 13,078,040 Common Shares outstanding. The maximum number of Common Shares to be purchased pursuant to the Bid represents approximately 10% of the "public float" of the Common Shares, calculated in accordance with the rules of the TSX (being approximately 12,724,231 Common Shares). The price which Ag Growth will pay for any Common Shares purchased by it will be the prevailing market price of the Common Shares on the TSX at the time of such purchase.

The Bid will commence on December 10, 2009 and will terminate on December 9, 2010 or such earlier time as the Bid is completed or terminated at the option of Ag Growth. The daily limit on purchases under the Bid is 13,046 Common Shares, being 25% of Ag Growth's average daily trading volume for the prior six months of 52,184 Common Shares. Subject to the foregoing, the number of Common Shares that may be purchased for cancellation and the timing of any such purchases will be determined by Ag Growth.

Management of Ag Growth believes that from time to time the market price of the Common Shares may not fully reflect their underlying value and that the purchase of Common Shares at such times is in the best interests of Ag Growth. Ag Growth intends to enter into a pre-defined plan with its designated broker to allow for the repurchase of Common Shares at times when Ag Growth would ordinarily not be active in the market due to its own internal trading blackout periods, insider trading rules, and otherwise. Other than sales of Common Shares by certain directors and officers of Ag Growth (the proceeds of which will be used in part to satisfy certain tax liabilities related to the vesting of Common Shares under Ag Growth's equity compensation plans), no director or senior officer of the issuer intends to sell securities of Ag Growth during the course of the Bid. Ag Growth's predecessor, Ag Growth Income Fund (the "Fund"), previously purchased 200,000 trust units of the Fund under a normal course issuer bid completed in the last 12 months at an average price of $19.47 per trust unit.

Company Profile

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.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

Contact Information

  • Ag Growth International Inc.
    Steve Sommerfeld
    Investor Relations
    (204) 489-1855