Ceres Global Ag Closes Transaction to Sell Manitowoc, WI Grain Storage Facility
Date Posted: May 27, 2014
TorontoCeres Global Ag Corp. ("Ceres" or the "Company") (TSX: CRP) May 26 announced that its 100% owned subsidiary, Riverland Ag Corp., has closed the transaction to sell its Manitowoc, Wisconsin grain storage facility to Briess Malt and Ingredients Company of Chilton, Wisconsin.
Ceres received $6.1 million in gross proceeds from the sale of the Manitowoc facility.
Under the terms of the sale, Ceres, through Riverland, will lease back from Briess one million bushels of storage capacity at Manitowoc for a three-year term.
The proceeds will be put toward the funding of the company's Northgate Project.
"This is a key milestone in our plan to transform Riverland into an active grain trading and merchandising company, while optimizing Riverland's grain elevator capacity through selective asset sales," said Michael Detlefsen, President and CEO of Ceres.
"It is also a critical step in re-allocating capital to fund ongoing construction initiatives at Northgate."
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