Kingston, Ontario, Canada
July 21, 2008
Performance Plants
Inc. (“PPI”), a leading global agricultural biotechnology
company with research and development facilities in Kingston,
Ontario, Saskatoon, Saskatchewan and Waterloo, New York,
announced today the completion of a $13 million equity
financing.
PPI has developed and patented a range of stress-resistant crop
seed technologies (weatherproofing “traits”) that deliver higher
yields and more consistent and cost effective harvests for
farmers and feedstock suppliers under conditions of
environmental stress such as drought and excessive heat or cold.
The company's traits are being evaluated for food crops both
internally and in partnership with world-leading seed companies
including DuPont business Pioneer Hi-Bred, Syngenta
Biotechnology, Stine Seed Company, RiceTec Inc. and The Scotts
Miracle-Gro Company.
The company's breakthrough Yield Protection Technology® (“YPT®”)
is at the heart of its suite of technologies. YPT® enables
plants to better tolerate drought conditions and to recover
faster when watered. Extensive field trials of YPT® corn are
underway for the third year in the United States, and field
trials will begin in South America later in the year.
PPI is also developing non-food biomass crops such as
switchgrass, Miscanthus grass and hemp for biofuels use that can
be grown on marginal farmland with increased convertibility to
fermentable sugars. The company recently purchased a world-class
biotechnology research facility in Waterloo, New York that will
become the centre for its biofuels research activities. PPI also
recently entered into a multiyear agreement with Lafarge Canada
Inc. to develop and grow clean energy biomass for use as fuel at
the Lafarge Cement Plant in Bath, Ontario.
The funds raised will be used to further develop and expand
PPI's portfolio of crop seed traits, accelerate
commercialization of the company's food crop traits, and
aggressively develop its biofuels business plan and expand its
clean energy industrial partnerships.
The equity financing was led by Ceres Global Ag Corp. of
Toronto, Ontario. Eastwood Capital Corp. was the other major
investor in the financing. Ceres Global Ag Corp. was established
in December 2007 to invest in leading global public and
non-public agricultural businesses. It is listed on the TSX
(TSX-CRP) and is managed by Front Street Capital and Muir
Detlefsen & Associates Limited. Eastwood Capital Corp. is an
investment holding company owned by William T. Holland of
Toronto, Ontario. Other investors include a syndicate of private
Boston investors, including Saturn Asset Management, and
Montreal-based Endurseaux Inc.
“This investment signals a strong endorsement of the company's
patented food and biofuels biotechnology,” said Peter
Matthewman, President, Performance Plants Inc., “and will
facilitate the aggressive development of our food crops and
biomass feedstocks for liquid transportation fuels, coal
replacement and biochemicals.”
“Ceres Global Ag Corp. provides investors with an opportunity to
gain private equity exposure to leading global agricultural
businesses, such as Performance Plants Inc.,” said Tom Muir,
Chief Transaction Officer & Director, Ceres Global Ag Corp. “As
the world grapples with shortages of food and increasing food
prices, PPI's yield-enhancing technologies put it at the
forefront of providing solutions for increased global food
production.” |
|