Clean Seed Capital Group Ltd. (TSX-V: CSX) has announced that it will not proceed with the acquisition of Harvest International Inc. of Storm Lake Iowa. Graeme Lempriere, chairman of the Board of Directors and CEO of Clean Seed, said, “During final stages of our due diligence and syndicated financing efforts, the discovery of material changes to the Harvest International business presented new realities. As a result, Clean Seed Executive Management and Board of Directors elected to pause financing activities and allowed the Letter Agreement to terminate as no resolution could be reached to navigate the changes.
“While disappointing in the short term, Clean Seed is extremely encouraged by the strength of support offered by its lenders and partners in the public markets along with Farm Credit Canada and Export Development Canada. We will build upon this support as we shift our focus to alternative strategic options and opportunities for the ‘iron’ aspect of our business. Although this transaction will not proceed, Clean Seed and Harvest International remain willing to do business in the future.”
Meanwhile, the company said it will continue to build on its foundation as a technology leader in the agricultural sector with the launch of our SMART Planter spring 2019 testing and demonstration program. This program will continue in the development of its advanced software systems, on-board sensor, data and communications network and allow continued testing of canola singulation in Western Canada.