WINNIPEG, Manitoba — Ag Growth International Inc. (TSX: AFN) (“AGI”, the “Company”, “we” or “our”) is pleased to announce the resolution of the lawsuit brought by our customer, Fibreco Export Inc. (“Fibreco”) relating to a commercial grain storage bin failure (the “Bin Incident”) at Fibreco’s terminal. The Bin Incident was originally announced in September 2020 and the lawsuit commenced in June 2021.
We are pleased to confirm that a mutual settlement agreement has been entered into with Fibreco that settles all matters between AGI and Fibreco relating to the Bin Incident. AGI expects to record an additional pre-tax charge of approximately $15.6 million in the second quarter of 2023 in connection with the Fibreco settlement, including insurance recoveries that will be received. We believe the settlement between AGI and Fibreco will help to facilitate the finalization of other insurance-related matters.
“We are encouraged to be putting this lawsuit behind us and preserving a strong ongoing commercial relationship with Fibreco,” commented Paul Householder, President & CEO of AGI. “Since the Bin Incident occurred, both parties have worked amicably to achieve a viable resolution. With today’s announcement, we are taking an important step to permanently resolving this matter and focusing on the opportunities to continue working cooperatively together.”
“While the past few years have been challenging, we are encouraged to finally reach resolution with AGI,” added Doug Wilkes, Fibreco Executive Chairman. “The grain business at our terminal has been up and running for over a year, and the settlement of this issue will allow us to fully concentrate on operating our business and meeting the needs of our customers. I’d like to thank everyone involved in helping us reach a final resolution of this matter and we look forward to further working with them.”
AGI Company Profile
AGI is a provider of the equipment and solutions required to support the efficient storage, transport, and processing of food globally. AGI has manufacturing facilities in Canada, the United States, Brazil, India, France, and Italy and distributes its product worldwide.
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