Farmers Edge Inc., a portfolio company of Fairfax Financial Holdings Limited (TSX: FFH, FFH.U), Osmington Inc. and Mitsui & Co. Ltd., has filed a preliminary prospectus in connection with a proposed initial public offering of common shares for gross proceeds of $100 million.
The number of common shares to be sold and the price per share have not yet been determined. It is anticipated that the offering price will be between $10.00 and $17.00.
Farmers Edge has applied to list its common shares on the Toronto Stock Exchange (TSX) under the symbol “FDGE.”
Initially founded in 2005 as an agronomic consulting services company, Farmers Edge is a global leader in digital agriculture delivering cutting-edge solutions powered by a unique combination of field-centric data, artificial intelligence, and complete integration.
For the nine months period ended September 30, 2020, Farmers Edge reported $26.8 million in revenues, $55.7 million in operating loss and $67.6 million in net loss.
As of December 31, 2020, Farmers Edge employed 500 individuals in Canada (294), USA (123), Brazil (56), Australia (15) and Eastern Europe (12).
As at September 30, 2020, Farmers Edge had 69,141,225 common shares outstanding and 160,554,295 potential dilutive common shares: 5,880,592 related to stock options, 27,746,874 related to warrants and 126,926,828 related to the equity conversion option of the convertible debentures.
Fairfax Financial Holdings will continue to own majority of Farmers Edge following the offering.
UPDATE: Fairfax Financial Holdings backed Farmers Edge prices $125M IPO
photo credit: Farmers Edge
FARMERS EDGE INC. FILES PRELIMINARY PROSPECTUS FOR INITIAL PUBLIC OFFERING OF COMMON SHARES
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
February 9, 2021 – Farmers Edge Inc. (“Farmers Edge” or the “Company”) announced today that it has filed a preliminary prospectus with the securities regulatory authorities in each of the provinces and territories of Canada and obtained a receipt therefor in respect of its initial public offering (the “Offering”) of common shares (“Common Shares”). The Offering contemplates a treasury offering of Common Shares by Farmers Edge. The number of Common Shares to be sold and the price per Common Share have not yet been determined.
The Offering is being made through a syndicate of underwriters led by National Bank Financial Inc. and CIBC Capital Markets acting as joint bookrunners, and includes Scotia Capital Inc., Canaccord Genuity Corp. and Raymond James Ltd.
The preliminary prospectus contains important information relating to the Common Shares and is still subject to completion or amendment. Copies of the preliminary prospectus will be available on SEDAR at www.sedar.com.
The preliminary prospectus has not yet become final for the purpose of a distribution of securities to the public.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale or acceptance of an offer to buy these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the time a receipt for the final prospectus or other authorization is obtained from the securities commission or similar authority in such jurisdiction.
The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state of the United States and may not be offered or sold within the United States unless an exemption from registration thereunder is available. This press release is not an offer to sell or a solicitation of an offer to buy any Common Shares in the United States.
About Farmers Edge
Farmers Edge is a global leader in digital agriculture delivering cutting-edge solutions powered by a unique combination of field-centric data, artificial intelligence, and complete integration. Farmers Edge is transforming the industry with disruptive technologies and strategic partnerships designed to enhance connectivity across the entire agricultural ecosystem. With the most comprehensive data management platform on the market–FarmCommand®–Farmers Edge is revolutionizing the way farmers, agricultural professionals, and agribusinesses interact with data. For more information please visit farmersedge.ca.
For further information:
Jeffrey Kowall, Vice-President of Legal and Corporate Secretary