Canterra Seeds Holdings Ltd.

Canterra Seeds Holdings Ltd.

August 13, 2008 11:51 ET

CANTERRA SEEDS HOLDINGS LTD. Announces Signing of Equity Participation and a Memorandum of Agreement With Riverland Agriculture Ltd.

WINNIPEG, MANITOBA--(Marketwire - Aug. 13, 2008) - CANTERRA SEEDS HOLDINGS LTD. ("CANTERRA SEEDS") is pleased to announce that it has signed a Memorandum of Agreement ("MOA") with Riverland Agriculture, Ltd. ("Riverland Ag"), a federally incorporated Canadian Company. Under the terms of the MOA, Riverland Ag will acquire approximately 1,286,187 Class A common shares ("Common Shares") of CANTERRA SEEDS for the aggregate subscription price of $3,125,000. Such Common Shares when issued will represent approximately 25% of the issued and outstanding Common Shares of CANTERRA SEEDS. Under the terms of the MOA the parties have also agreed upon terms by which the parties will collaborate with each other on future business opportunities. The completion of the transactions contemplated in the MOA is conditional upon the approval of the shareholders of CANTERRA SEEDS to amend the articles of CANTERRA SEEDS.

"The investment capital and the strategic alignment of CANTERRA SEEDS and Riverland Ag will ensure that the growth of CANTERRA SEEDS continues," stated Ken Nelson, President and Chairman of CANTERRA SEEDS. "This strengthening of our Balance Sheet will allow us to maintain a sharp focus on our core business while creating new business opportunities for both CANTERRA SEEDS and Riverland Ag."

Owned by 178 western Canadian shareholders, CANTERRA SEEDS is committed to the development of genetically superior seed varieties. From high-yielding canola hybrids to a versatile portfolio of cereals, pulses and other crop kinds, customers can be assured of optimal performance.

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