Deveron Corp. (TSX-V: FARM) taps 34 million acre Oklahoma market and announces fourth acquisition in 2021.
Deveron has executed a definitive agreement (the “Definitive Agreement”) to acquire the assets of Tana Ag Solutions Group LLC (“Tana Ag”), an Oklahoma based digital agronomy company focused on soil health and yield improvement (the “Acquisition”).
Tyler Knight, CEO of Tana Ag, commented “Deveron has quickly become an enabler of agronomists, helping people like myself find technological solutions to improve my business. I’m looking forward to expanding my influence in Oklahoma and in other markets as we integrate our leading soil health and independent management practices into Deveron’s technology. This is just the beginning for our current and future clients as we look to improve their farm outcomes with the help of technology and data.”
David MacMillan, Deveron’s President and CEO, commented “Tana Ag has been an incredible leader in Oklahoma and representative of the type of companies we want to empower to grow. Oklahoma has a market of 34 million acres where we believe we can provide leading digital insights and value-add services to agronomists and farmers.”.
As consideration for the Acquisition, Deveron has agreed to: (i) pay Tana Ag Solutions an initial cash payment of US$37,500 upon signing of the Definitive Agreement, and an aggregate of US$37,500 on each of the first two anniversaries of the signing of the Definitive Agreement; and (ii) issue such number of common shares in the capital of the Company (the “Common Shares”) equal to US$37,500 at a price of $0.82 per Common Share upon receipt of the approval of the TSX Venture Exchange (the “TSXV”) and an additional number of Common Shares equal to US$37,500 at a price of $0.82 per Common Share on each of the first two anniversaries of the signing of the Definitive Agreement.
Under the terms of the Acquisition if all milestones are met, Deveron has agreed to pay an additional US$909,440. Based on the achievement of certain milestones, the remaining US$909,440 would be payable as follows:
- US$125,000 in cash and issue such number of Common Shares equal to US$132,880 in the event that during the 12 month period (the first earn-out period), following the execution of the agreement, Tana Ag exceeds gross revenue for the prior twelve month period by at least US$1,000,000.
- US$150,000 in cash and issue such number of Common Shares equal to US$156,800 in the event that during the 12 month period following the first earn-out period (the second earn-out period), Tana Ag exceeds gross revenue for the prior twelve month period by at least US$1,000,000.
- US$150,000 in cash and issue such number of Common Shares equal to US$194,760 in the event that during the 12 month period following the second earn-out period, Tana Ag exceeds gross revenue for the prior twelve month period by at least US$1,000,000.
The completion of the transaction remains subject to all regulatory and other approvals, including the approval of the TSX Venture Exchange.
About Tana Ag: Tana Ag Solutions is an independent agronomy company committed to providing customers with the latest technology for weather, soils, agronomy and analytics to help them maximize crop yields.
For more information please visit: http://www.deveronuas.com