Capital Ideas TV: Clean Seed Capital Taking on Big Ag with SMART Seeder


Published on 18 Mar 2019

Clean Seed Capital (TSXV:CSX;OTC:CLGPF) is taking on the big players in agriculture by disrupting the sector with its patented CX-6 SMART Seeder, a technologically advanced machine for seeding and planting.

Capital Ideas Media publisher Mark Bunting talks to Clean Seed CEO Graeme Lempriere, who details the company's "transformational" deal to tackle the U.S., gives financial projections, and explains why the time for investors to get into the stock is now.

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Clean Seed Announces Unsecured Convertible Note Unit Financing To Complete Harvest International Acquisition

Clean Seed Announces Unsecured Convertible Note Unit Financing To Complete Harvest International Acquisition

Clean Seed Capital Group Ltd. (“Clean Seed” or the “Company”) (TSXV: CSX) (OTC: CLGPF) is pleased to announce that it has entered into an engagement letter with a syndicate of agents co-led by Canaccord Genuity Corp. and Raymond James Ltd. for a private placement of up to 10,000 unsecured convertible note units on a best efforts basis for gross proceeds of up to $10,000,000.

Clean Seed Added to Fabrice Taylor's Top Picks

Clean seed originally launched its smart seeder CX-6 for use in small grain seeding. The technology was well received by the agriculture community in Canada. After obtaining U.S patents Clean Seed has now announced plans to join forces with Harvest International and combine Clean Seed’s technology with Harvest International's existing planter business.

Purchase Price: $13,100,000 USD and future additional earn-out considerations.

The combined Company will be able to utilize the technology of both companies to provide a farmer based solution for both the planting and seeding market that could revolutionize how crops are planted and seeded worldwide.

Clean Seed has stated that financing for this acquisition will utilize Harvest an established, operating business, with current sales volume that justify a financing strategy aimed at utilizing long-term, patient debt financing to avoid significant shareholder dilution while retaining earnings to grow the business.
Because Harvest is a private company a financial statement audit to align Harvest as subsidiary for reporting purposes had to be completed.

Clean Seed and Harvest have been working with strong financial partners that have expressed a deep commitment to supporting expansion plans by funding this transaction. Details of the financing are expected to be announced soon.

While working to complete necessary financing to close the acquisition, Clean Seed has been Successful at adding to its already impressive board and management team.*

Jim Walker, Former CASE IH Vice President of North America, Joins Clean Seed Board of Directors

November 6, 2018 - Vancouver, British Columbia - Clean Seed Capital Group Ltd. (TSX-V: CSX) (“Clean Seed” or the “Company”) is pleased to announce Jim Walker, former CASE IH Vice President and former AGCO Corporation Vice President of Sales and Marketing, has joined the Company’s Board of Directors.

Jim Walker is a respected leader in the agricultural equipment business, with extensive experience in prominent senior leadership positions. Most recently, Jim was Vice President of North American Agricultural Business for CASE IH, a $26 billion global manufacturer and distributor of agricultural equipment, employing approximately 63,000 employees. Jim directed all CASE IH agricultural activities in the United States and Canada, achieving a significant increase in trading profit from 2006 to 2013 from a duel approach of delivering market share gains in the core product lines while managing costs.

Prior to joining CASE IH in July 2006, Jim served as the Vice President of Sales and Marketing, North America, of AGCO Corporation, a $7.4 billion global manufacturer and distributor of agricultural equipment employing approximately 19,000 employees. Jim directed 50% growth in revenues from 2004 to 2006 while reducing the distribution network by 50% and consolidating 23 AGCO brands into a handful. Previous to AGCO, he held a similar position with Claas Corporation, where he successfully developed Claas' combine and hay tool business for North America. Jim also spent 10 years with Deere and Company, where he helped build, support and train its professional dealer network.

Jim Walker states “After being directly involved in the leadership of various North American agriculture equipment manufacturers over the last 40 years, the opportunity to join the Clean Seed Board of Directors is a natural evolution for my career. The fact that Clean Seed has global aspirations and is involved in specialty products that are technology driven is exciting to me. I have great confidence in the management team and am aligned with their vision for the company. I look forward to playing an active and meaningful role with the team and particularly, in the commercialization of the business.” Graeme Lempriere, Chairman and Chief Executive Officer states “As we drive towards closing the acquisition of Harvest International Inc. it is my distinct pleasure to welcome Jim Walker to our board of directors. Jim’s depth of knowledge, network and proven track record is of immense value to our organization. His insight to the industry and hands on commitment to our team dovetails perfectly with our current business plan”.

Driving Technology Development in Modern Agriculture www.cleanseedcapital.com

Steve Larocque will be stepping down from the board of directors to make room for Jim Walker’s appointment. The Clean Seed Board of Directors and executive team would like to take this opportunity to thank Steve for his unwavering support and years of service to the board. Steve played an important role during the development of our technologies. We are privileged to have his continual contributions through his role as an advisor.

ON BEHALF OF THE BOARD “Graeme Lempriere” Chairman and CEO

About Clean Seed Capital Group Ltd.

The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol "CSX".

We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at an incredibly high level. We pride ourselves as progress facilitators that quickly turn viable concepts and ideas into commercially viable products that can fulfill demand.

The CX-6 SMART Seeder™ is a revolutionary seeding tool that utilizes the unique synergy of sophisticated electronic metering and intuitive software control putting rowby-row six-meter variable rate technology at the forefront of agricultural innovation. Our innovations create a new class of highly accurate seeding equipment designed specifically for today’s farmer.

For further information please contact Clean Seed at 604-566-9895 and visit our website at http://www.cleanseedcapital.com.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

This press release is not an offer or a solicitation of an offer of securities for sale in the United States. The common shares of Clean Seed Capital Group Ltd. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION: This news release includes certain “forward-looking statements” as defined under applicable Canadian securities legislation. Forward-looking statements herein include, but are not limited to, statements with respect to completing future events or actions. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Clean Seed disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

GARY ANDERSON APPOINTED TO PRESIDENT OF CLEAN SEED CAPITAL GROUP

October 16, 2018 - Vancouver, British Columbia - Clean Seed Capital Group Ltd. (TSX-V: CSX) (“Clean Seed” or the “Company”) is pleased to announce that CEO Graeme Lempriere has appointed Gary Anderson (former CEO of Ag Growth International – TSE: AFN) to serve as President of Clean Seed. Gary has held a seat on our board of directors since August 2017 and has played a role as independent senior advisor to the Company since February of 2017.

 Gary Anderson co-founded Ag Growth International (AGI) in 1996, a TSX listed company, serving as its Chief Operating Officer from its inception until late 2010, at which time he became the company’s Chief Executive Officer. By his retirement in December 2015, Gary had successfully led AGI from its humble grassroots origins to a highly successful billion-dollar enterprise with a global presence in the agricultural landscape. Gary and his team also had considerable success in the acquisition and integration of over a dozen businesses into the AGI group. Gary continues to serve on the AGI Board of Directors as well as a consultant until spring 2018, contributing toward the development of AGI’s Greenfield business in Brazil.

 Gary Anderson states “My involvement with Clean Seed has progressed from acting as an independent senior advisor, to working closely with the Senior Management Team on the Harvest International acquisition and now the development and implementation of our go forward strategies. Along the way I have come to appreciate both the exceptional opportunity present and the extremely talented and dedicated people involved with this venture. While Clean Seed is technically a start up in terms of commercialization, their strengths and competencies far exceed what one would normally expect at this stage of development. This gives me confidence in our collective abilities to execute quickly and continue our effective pursuit of technical innovation and our ability to leverage these assets strategically. I am excited to accept the role of President and will do my utmost to champion this business for the benefit of its customers, employees and shareholders.”

 Graeme Lempriere, Founder & CEO states “I have had the privilege and the distinct pleasure of working with Gary over the past 18 months. Gary’s deep commitment to our mission, both professionally and financially, have been far-reaching and consequential for our group. His accomplished history, insight and deep-rooted understanding of manufacturing in combination with our need for efficiencies and meeting demands of our rapidly accelerating growth plans makes this strategic appointment a perfect fit for this stage of our evolution. We welcome him in his new role as President.”   

ON BEHALF OF THE BOARD

“Graeme Lempriere”

Chairman and CEO

 

 

About Clean Seed Capital Group Ltd. 

The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol "CSX".

 We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at an incredibly high level. We pride ourselves as progress facilitators that quickly turn viable concepts and ideas into commercially viable products that can fulfill demand.

 The CX-6 SMART Seeder™ is a revolutionary seeding tool that utilizes the unique synergy of sophisticated electronic metering and intuitive software control putting row-by-row six-meter variable rate technology at the forefront of agricultural innovation.  Our innovations create a new class of highly accurate seeding equipment designed specifically for today’s farmer.

 For further information please contact Clean Seed at 604-566-9895 and visit our website at http://www.cleanseedcapital.com. 

 Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

 This press release is not an offer or a solicitation of an offer of securities for sale in the United States.  The common shares of Clean Seed Capital Group Ltd. have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain “forward-looking statements” as defined under applicable Canadian securities legislation.  Forward-looking statements herein include, but are not limited to, statements with respect to completing future events or actions. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements.  There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.  Clean Seed disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Clean Seed Capital Group Update to the Shareholders

August 27, 2018 – We would like to take this opportunity to update you on the progress of the acquisition of Harvest International Inc., and to delve a little deeper into both the acquisition rationale and our strategic thinking going forward. You will recall that on July 17thClean Seed Capital Group (TSX.V: CSX) proudly announced its agreement to acquire U.S. based Harvest International.

Acquiring Harvest is part of a broader diversification and strategic growth strategy aimed at expanding Clean Seed’s reach into the U.S. planter market and providing a direct path into the international planter market. Harvest has a full suite of market accepted, commercially available offerings that include the highly recognized and widely praised LASERPRO1 and LASERPRO2 planter row technologies; and the fully customizable 40’ – 60’ planter frames, including the UltraPlant60.

The benefits to acquiring Harvest are far reaching beyond U.S. marketplace expansion. The consolidation of our management and engineering teams, technologies, patent portfolio and production infrastructure will strengthen and reinforce our commitment to the advancement of our award winning CX-6 SMART Seeder platform in Canada and abroad. The farmer focused technological advantages of both companies will cross pollinate between the CX-6 SMART Seeder and Harvest Planter, blurring the lines between a planter and a seeder, including the introduction of precision singulation metering at the opener for all crops from corn to canola.

Other important points I’d like to communicate are, combining with Harvest:

  • expands our robust intellectual patent portfolio with the addition of key farmer focused planter components that provide us a unique advantage in competing in the North American and Global planter marketplace. Harvest is one of the few new entrants in the planter market in 25 years and entered by featuring modular customization designed to integrate with the latest precision planting technology. Historically this 6000-8000 unit per year market in NAR is dominated by only three major manufacturers; John Deere, Case IH and Kinze which represent over 90% of the market sales;
  • secures a modern 75,000 square foot state of the art manufacturing facility assuring internal production, quality control and development facilities.
  • expands our offerings across Canada as we are currently implementing plans that offer our Canadian farmers full access to the entire Harvest International product line through our existing dealer network – Rocky Mountain Equipment.
  • strengthens the quality, performance and distribution of the CX-6 SMART Seeder.

As part of our due diligence, we have worked to source strong financial partners that have expressed a deep commitment to supporting our expansion plans by funding this transaction. As Harvest is an established, operating business, our financing strategy is designed around working with these partners to utilize long-term, patient debt financing to avoid significant shareholder dilution while retaining earnings to grow the business. We are actively working towards closing the transaction which includes completing a financial statement audit to align Harvest as subsidiary for reporting purposes.

As we advance to closing the combination over the coming months we will be announcing our business plan for the combined Clean Seed and Harvest operations, including providing key details on the current and prospective operations to allow shareholders both new and veteran to better evaluate their investment decisions in regard to CSX.V. We also note that since the announcement, Clean Seed personnel have been under a trading black out since there remains limited material information about Harvest available to the marketplace.

The acquisition of Harvest International Inc. is a robust profitable complementary business unit to the CX-6 SMART Seeder and sets the stage for rapid revenue growth while positioning Clean Seed as a future Original Equipment Manufacturer (OEM) and provides a catalyst for additional strategic initiatives. We look forward to further updating you on our progress with Harvest and other related growth opportunities. To our loyal shareholders and the farming community on both sides of the border, thank you for your ongoing support and commitment to our collective mission of disrupting agriculture through technology.