|
|
|
|
NEWS RELEASE
Clean Seed Capital Closes Strategic North American Joint Venture Agreement with Norwood
(TSX.V: CSX)
February 11, 2020 - Vancouver, British Columbia - Clean Seed Capital Group Ltd. (“Clean Seed” or the “Company”) (TSX-V: CSX) announces it has closed the joint venture (the “Joint Venture”) agreement with Norwood Sales Inc. (“Norwood”) announced on November 7, 2019.
|
|
The Joint Venture combines Norwood’s significant market experience, technologies, engineering, supply chain and manufacturing resources with Clean Seed’s award-winning SMART technologies. The Joint Venture provides Clean Seed a clear path to commercializing its SMART technologies without the financial requirements of a manufacturing plant, thus dramatically reducing its capital needs going forward.
The newly formed partnership is committed to commercializing a whole new class of seeding and integrated planting equipment for the North American market. The key terms of the Joint Venture are consistent with the November 7, 2019 news release.
|
|
Graeme Lempriere, Chief Executive Officer of Clean Seed, states “Our collective teams have been swiftly working together for several months integrating our technologies in preparation for the introduction of our new SMART Seeder MAX™ / MAX – S™. Working with the Norwood group has been a seamless process, the collaborative nature of our teams has been remarkable, and I am extremely pleased to announce we have finalized and closed our Joint Venture Agreement. This partnership optimizes our ability to deliver growth, rapidly and reliably with an invested partner that has a common interest and the capability to deliver. Our teams are also collaborating on several additional opportunities that will further differentiate our offerings from the current markets in a variety of applications”.
|
|
|
The key terms of the Joint Venture:
- Clean Seed and Norwood will form a new entity with the purpose to develop, commercialize, distribute and support its hybrid planting and seeding equipment in North America.
- Each of Clean Seed and Norwood will hold a 50% interest in the ownership of the newly formed entity.
- Clean Seed will license its SMART Seeder™ technologies to the Joint Venture for a renewable seven-year term.
|
|
- Norwood will license its front folding frame rights, cart, hydraulics and other related technologies to the Joint Venture on the same terms as Clean Seed.
- Norwood will undertake mechanical modifications, mechanical integration, hydraulic integration, related prototyping and mechanical engineering, all of which will be the property of the Joint Venture.
- Both Clean Seed and Norwood will contribute their respective components for production units to the Joint Venture.
|
|
Dan Norwood – President of Norwood, states “Technology is evolving quickly in the agricultural sector, Clean Seed has some persuasive innovations that are setting new benchmarks for both seeding and planting. We are excited to partner with this progressive group by contributing our own iron technology designs, expertise in manufacturing and distribution to this partnership”.
|
|
|
Norwood was founded by Bob Norwood with a main goal of distributing high quality, reliable agricultural products to local farmers. Dan Norwood joined his father, Bob, in 1992 and succeeded him as sole owner in 2003.
Dan has successfully navigated the progression of his business from that of a distributor of agricultural equipment to becoming a manufacturer of Norwood product lines of tillage, seed tenders, grain handling and livestock related products, including substantial OEM production with major mainline agriculture equipment manufacturers.
|
|
|
Norwood’s 180,000 square foot facilities house the latest in lasers, milling, robotic welding and powder coat paint line equipment, along with a growing workforce of over 150 employees. Norwood is well positioned for further growth, on its 35-acre footprint of land just south of Fargo along I-29.
|
|
|
Clean Seed and Norwood are arms’ length parties. There will be no finders fees paid in connection with the Joint Venture.
|
|
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 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.
|
|
|
|
|
|
|
