Business
AGI Declares Dividend for March 2020; Provides Business Update
AGI Declares Dividend for March 2020; Provides Business Update Canada NewsWire W...
About this update from Ag Growth International Inc.
[{"type":"text","content":"\n\n\n\nAGI Declares Dividend for March 2020; Provides Business Update\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nWINNIPEG, March 17, 2020\n\n\n\nWINNIPEG, March 17, 2020 /CNW/ - Ag Growth International Inc. (TSX: AFN) (\"AGI\", or the \"Company\") today announced the declaration of a cash dividend of $0.20 per common share for the month of March 2020. The dividend will have a record date of March 31, 2020 and will be paid on April 15, 2020. The dividend is an eligible dividend for Canadian income tax purposes. Today's announcement is being made in advance of AGI's quarterly earnings release, as is normal practice, as AGI's Q4 2020 scheduled release date of March 25, 2020 occurs too late to meet regulatory advance notice requirements. Going forward, out of an abundance of caution due to the uncertainties in the current environment, dividend announcements will be made on a monthly basis. AGI's current annualized cash dividend rate is $2.40 per share. \nCOVID-19\nDue to the unprecedented environment AGI is providing the following information to address investor inquiries. \nManagement reiterates its previously released guidance with respect to Q4 2019 of adjusted EBITDA of approximately $23 million. Business activity in Q1 2020 prior to the outbreak of COVID-19 was in line with management expectations, and AGI's sales order backlog remains higher than at the same time in 2019. Our liquidity metrics are strong and covenant levels are well below required thresholds, in part due to an $85 million bond issuance in January 2020, the proceeds of which were applied against senior debt. \nAt this point in time, it is difficult to predict the duration and extent of the pandemic and its impact on our business. The emergence of COVID-19 is expected to impact results in the short-term.  However, AGI remains confident in the macro business outlook notwithstanding the expected impact from the COVID crisis in the coming months due to expectations of robust demand in our North American Farm markets as we move into the planting season with strong backlogs,...