CoTec Holdings Making Anchor Investment to Accelerate Commercialization of International Zeolite's Revolutionary Proprietary NEREA(R) Fertilizer Technology
International Zeolite Corp. (TSXV: IZ) (OTCQB: IZCFF) (FSE: ZEON) ("IZ") and CoTec Holdings Corp. (TSXV: CTH) ("CoTec") are pleased to announce that CoTec has agreed to make a $2 million strategic investment in IZ to support its go-to-market activities in the agricultural and green tech segments.
CoTec and IZ share similar visions and objectives and are focused on creating a portfolio of green disruptive technologies that are high-margin, eco-friendly and deliver reductions in carbon emissions. The investment from CoTec is expected to fast track IZ's ability to move rapidly to full commercialization, marketing and sales capabilities for its disruptive agricultural products and solutions. The funding will support the construction of IZ's first NEREA® production facility to be in Ontario, Canada with an expected completion date of March 2023. In addition to its financial investment, CoTec will support IZ through the involvement of its management team, who collectively have extensive global reach and expertise in green technologies.
"We are excited to partner with IZ and support their efforts to commercialize its proprietary NEREA® technology," commented Mr. Julian Treger, CEO of CoTec. "Fertilizer is a major contributor to global CO2 emissions and NEREA® is exactly the type of breakthrough the agricultural industry needs to reduce its carbon footprint - independent studies have shown that it could improve the efficacy of fertilizer by a factor of up to eight and reduce plant and crop growth cycles by as much as twenty-five per cent. Additionally, at a time of conflict in Ukraine, NEREA® could significantly reduce the Western world's fertilizer needs and its exposure to higher risk jurisdictions for much needed supply. Our investment will give us a substantial interest in IZ, and we intend to work closely with the IZ management team to help them aggressively roll out this exciting technology."
"We are very pleased to partner with CoTec and are excited to commence the commercialization of NEREA® products" said Ray Paquette, IZ CEO. "Once our products are established in Canada, we will roll it out to the other jurisdictions where we have secured exclusivity."
NEREA®
NEREA® is IZ's proprietary on demand grow system designed for all agricultural sectors: nurseries, greenhouses, horticultural growers, and outdoor growers. It imbeds into zeolite particles all the macronutrients and micronutrients needed by plants to grow healthy and effectively. It is a demand driven system that allows plants to receive nutrients based on their need and at the time the plant needs it. Independent trials and validation studies show that NEREA® decreases crop time resulting in additional crops for growers thus increasing grower ROI, reduces the overall requirements for fertilizer by up to 80% resulting in much lower input costs for growers, and reduces greenhouse gases significantly through the reduction of fertilizer consumption. IZ has secured the rights to manufacture, market and sell NEREA® in Canada and the United States for a period of 20 years from approval of the NEREA® intellectual property in the relevant jurisdictions and global exclusivity arrangements are pending.
Transaction Terms
CoTec has signed a subscription agreement to purchase 13,333,334 units ("Units") from IZ on a private placement basis at a price of $0.15 per unit for an aggregate subscription of $2,000,0000 (the "Private Placement"). King Chapel International ("Kings Chapel"), a company associated with Mr. Treger, is also a party to the agreement and will subscribe for 2,000,000 Units, providing IZ with aggregate subscription proceeds of $2,300,000. Each Unit will consist of one common share of the company (each, a "Common Share") and one common share purchase warrant (each, a "Warrant"). Each Warrant will be exercisable for one Common Share at a price of $0.18 for 12 months from the closing date, which if exercised provides an additional $2,760,000 in operating capital for IZ.
$170,000 of the net proceeds of the Private Placement will be used to repay shareholder loans owing to Ray Paquette, the CEO of the company, and his affiliates, and the balance will be used to fund the commercialization of NEREA products for manufacturing, marketing and sales in Canada and for working capital purposes.
Pursuant to the subscription agreement, CoTec and Kings Chapel have each agreed to provide up to $300,000 in bridge loan funding to IZ (together the "Bridge Loan"). CoTec agreed to advance its funding concurrently with the execution of the Subscription Agreement and Kings Chapel will advance its Bridge Loan upon the satisfactory completion of its due diligence review of IZ. The Bridge Loan bears interest at 7% per annum and is repayable on the earlier of November 21, 2024, closing of the Private Placement and a change of control of IZ. The Bridge Loan is secured by a first ranking charge in favour of CoTec over all of IZ's assets. Amounts outstanding under the Bridge Loan will be credited towards the amount payable by CoTec and Kings Chapel upon completion of the Private Placement.
Upon completion of the Private Placement:
- CoTec and IZ will enter into an investor rights agreement pursuant to which CoTec will have customary pre-emptive rights to participate in future equity issuances by IZ and the right to appoint two members of IZ's board of directors;
- CoTec and Ray Paquette, the CEO and a director of IZ, will enter into a debenture call agreement pursuant to which CoTec will have the right to purchase all or any part of the Convertible Debentures (as defined below) at a price equal to 100% of the outstanding principal amount under the purchased Convertible Debentures at any time or from time to time until July 31, 2023; and
- CoTec will own 23.6% of the issued and outstanding Common Shares and 38.1% of the outstanding Common Shares on a partially-diluted basis (assuming the exercise of all of its Warrants).
As required by the policies of the TSX Venture Exchange (the "TSXV"), IZ will seek disinterested shareholder approval at its annual and special shareholder meeting to be held on January 4, 2023 for a resolution to approve CoTec or Kings Chapel becoming a "control person" of IZ. The directors and officers of IZ, who currently own 20.6% of the outstanding Common Shares, have agreed to vote all of their Common Shares in favour of this resolution.
Completion of the Private Placement is subject to a number of conditions, including receipt of IZ shareholder approval and all necessary TSXV approvals, CoTec completing its due diligence investigations of IZ and being satisfied with the results of such investigations in its sole discretion, receipt of all necessary regulatory approvals for the sale of NEREA® in the United States, the absence of any material adverse effect in respect of IZ and other customary conditions.
Debt Exchange
Ray Paquette, the CEO and a director of IZ, and an affiliated company currently hold two promissory notes of IZ in the original principal amounts of $243,000 and $793,000 respectively (the "Promissory Notes"). As of November 14, 2022, the aggregate amounts owing under the Promissory Notes (including accrued and unpaid interest) was $266,061.70 and $881,261.54, respectively. In addition, IZ currently owes an affiliated company of Mr. Paquette $108,000 in unpaid management fees. Mr. Paquette and IZ have entered into a debt exchange agreement pursuant to which IZ's obligations under the Promissory Notes and the unpaid management fees will be satisfied in exchange for the issuance to Mr. Paquette and his affiliated company of convertible debentures in the aggregate principal amount of $1,255,323.23 (the "Convertible Debentures").
Each Convertible Debenture will bear interest at the prime rate of interest published by Royal Bank of Canada + 2%. The Convertible Debenture held by Mr. Paquette will be payable in five equal annual instalments starting on June 30, 2023, and ending on June 30, 2027. The Convertible Debenture held by Mr. Paquette's affiliated company will be payable in two equal annual instalments on June 30, 2023 and June 30, 2024. The principal amount outstanding under the Convertible Debentures will also be convertible, at any time and from time to time, at the option of the holder, into Common Shares based on a conversion price of $0.15 per share, subject to customary adjustments.
The debt exchange transaction and the issuance of the Convertible Debentures is subject to TSXV approval. The debt exchange transaction is a related-party transaction as defined under Multilateral Instrument 61-101 ("MI 61-101"). Because IZ's shares trade only on the TSXV, the issuance of the Convertible Debentures is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(a) of MI 61-101.
All securities issued under the Private Placement and the debt exchange transaction are subject to a hold period of four months plus a day, in accordance with applicable securities laws and the policies of the TSXV.
On Behalf of the Board of International Zeolite Corp.
"Ray Paquette"
CEO
604.684.3301
On Behalf of the Board of CoTec Holdings Corp.
"Braam Jonker"
CFO
604.992.5600
About International Zeolite
International Zeolite's mission is to produce a line of high-value top-tier performance natural zeolite products and solutions. We believe that real change comes from the ground up. Our focused aim is to utilize the naturally occurring zeolite mineral to innovate commercial agriculture, industry and consumer practices that outperform their competition, and are better for the environment and world populations. Our purpose-driven zeolite solutions represent a new era of earth conscious environmental science that will relentlessly seek to transform agriculture, industry, and households to safer, sustainable, superior means of operation.
International Zeolite is a publicly traded issuer listed on the TSX Venture Exchange and trades under the symbol IZ.V
For further information, please visit www.internationalzeolite.com or contact Ray Paquette - (604) 684.3301
For Investor Inquiries:
info@internationalzeolite.com
For Sales and Commercial Inquiries:
sales@earthinnovations.ca
About CoTec
CoTec is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities, as the Company seeks to transition into a mid-tier mineral resource producer. The Company is committed to supporting the transition to a lower carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation.
CoTec is a publicly traded investment issuer listed on the Toronto Venture Stock Exchange and trades under the symbol CTH.V
For further information, please visit www.cotec.ca or contact Braam Jonker - (604) 992-5600.
Please join CoTec CEO, Julian Treger, and IZ CEO, Mark Pearlman on Friday, November 25, 2022 at 8:00AM PST for further information on this exciting investment opportunity. Click this link https://my.6ix.com/aIx5t8G4 to register for the event.
Forward-Looking Information
Statements in this press release regarding IZ, CoTec, their respective businesses, the Private Placement and related transactions which are not historical facts are "forward-looking statements" that involve risks and uncertainties, including statements relating to IZ's proposed commercialization of its NEREA®, the benefits and potential impact of NEREA®, the construction of IZ's proposed NEREA® production facility and completion and the anticipated benefits of the Private Placement. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. Actual results in each case could differ materially from those currently anticipated in such statements. For further details regarding risks and uncertainties facing IZ please refer to its public disclosure documents, copies of which may be found under IZ's SEDAR profile at www.sedar.com. For further details regarding risks and uncertainties facing CoTec please refer to "Risk Factors" in CoTec's filing statement dated April 6, 2022, as well as its other public disclosure documents, copies of which may be found under CoTec's SEDAR profile at www.sedar.com.
Neither 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 release.
Investing in Agriculture in Australia (Updated 2022)
Investing in the Australian agriculture sector could prove to be a lucrative decision for investors.
Higher-than-average rainfall has led to a record-breaking summer grain crop in Australia. This, paired with increased prices for grain, cattle and canola caused by the Russian-Ukrainian conflict spells a strong outlook for the Australian agriculture sector.
Investors who are interested in capitalising on the well-established Australian agricultural sector should consider the key factors and players involved.
Why invest in Australia's agriculture sector?
As mentioned earlier, the Australian summer crop production for 2021/2022 hit a new record of 5.5 million tonnes, according to the Department of Agriculture, Fisheries and Forestry. Additionally, the country’s agricultural exports value is forecasted to be AU$64.9 billion in 2022/2023, the highest on record.
Many factors, most notably the Russian invasion of Ukraine and increased energy prices, have contributed to sharply rising food prices in the past two years. For example, since the 2019 to 2020 fiscal year, the value of wheat increased 99 percent, the value of canola 114 percent, and the value of cotton 481 percent, according to the Australian Bureau of Statistics.
Agriculture is a large contributor to Australia’s GDP, and often seen as a reasonably safe investment offering stable returns long-term. Nonetheless, there are, of course, risks. One such risk is the unpredictable impact of weather and natural disasters on crop yields, which can harm returns.
How to invest in agriculture in Australia?
Owning a farm, cattle and wheat in Australia may be profitable at the moment, but it’s not accessible for most investors. The best way for investors to take advantage of the booming agriculture sector is to buy stocks in agriculture companies.
This can include companies directly involved in producing goods such as grains, potash and phosphate, and livestock, or companies that provide other products to the industry, such as fertilisers and land.
Key players in the Australian agriculture market
Australian investors interested in the agriculture market should consider the big players involved. Some of them are listed below by market cap as of July 27, 2022.
1. Incitec Pivot
Market cap: AU$6.84 billion
One of the two biggest fertiliser stocks listed on the ASX, Incitec Pivot (ASX:IPL) has been taking advantage of the strong market conditions and increased demand for fertiliser.
In its recent 2022 half-year report, the company announced its highest H1 earnings to date. Its fertiliser sales reached AU$257 million, an increase of 237 percent compared to its H1 2021.
Additionally, the company expects to earn a profit of over AU$60 million in the second half of 2022 from unsold manufactured product on hand.
2. Nufarm
Market cap: AU$1.92 billion
Nufarm (ASX:NUF) is a Melbourne-based seed and crop technology company serving customers in over 100 countries.
Specifically, Nufarm’s products help protect crops against disease, weeds and pests. Thanks to high demand and grain prices, Nufarm saw a 41 percent growth in earnings in H1 2022 compared to H1 2021. According to managing director and CEO Greg Hunt, the company sees a credible path to over AU$4 billion in revenue by 2026.
3. Graincorp
Market cap: AU$1.88 billion
Graincorp (ASX:GNC) is an agribusiness and process company with headquarters in Sydney. The company manages a variety of grains, specifically wheat, barley, canola and sorghum, with handling assets located in Eastern Australia.
Currently, Graincorp serves customers in over 50 countries and is the biggest grain storage business on the east side of the country.
In their financial year H1 2022, Graincorp reported earnings before interest, taxes, depreciation and amortization of AU$427 million, an increase of 207 percent from the previous year.
4. Elders
Market cap: AU$1.76 billion
Elders (ASX:ELD) works to increase the productivity of Australian farmers. It does so by supplying producers with various financial and real estate services, along with products such as wool, grain, livestock, seeds, fertilisers, agricultural chemicals and health products for animals.
In H1 2022, Elders reported sales of AU$1.5 billion, up from AU$1.1 billion. Thanks to a positive outlook for the winter crop, Elders expects strong demand in the second half of the year for agricultural chemicals, fertilisers and seeds.
Additionally, the company expects to finish the year with earnings 30 to 40 percent above those of FY2021.
5. Costa Group
Market cap: AU$1.16 billion
Costa Group (ASX:CGC) has become a significant player in the produce sector since its listing on the ASX in 2015. The company focuses on growing, packing and marketing fresh fruits and vegetables. Costa Group produces avocados, bananas, berries, citrus fruits, grapes, mushrooms and tomatoes.
In FY2021, Costa reported AU$64 million in net profits, an increase of 16.2 percent over 2020, and it acquired multiple citrus assets last year. Additionally, the company increased its development efforts in China, planting an additional 150 hectares.
Thanks to its broad focus on farming, packing and marketing, Costa aims to be diverse enough in its activities to mitigate risks from market volatility and agricultural events.
Don’t forget to follow us @INN_Australia for real-time updates!
Securities Disclosure: I, Matthew Flood, currently hold no direct investment interest in any company mentioned in this article.
Billy Goat Announces Grant of Restricted Share Units and Option
Billy Goat Brands Ltd. (the "Company" or "Billy Goat") (CSE: GOAT), is pleased to announce that it has granted an aggregate of 11,500,000 restricted share units ("RSUs") to certain arm's-length consultants, and an aggregate of 1,000,000 incentive stock options ("Options") to directors of the Company to purchase up to 1,000,000 common shares of the Company at a price of $0.05 per common share for a period of five years from grant, as compensation for continuing services rendered to the Company.
The RSUs and the Options will vest four months and one day from the date of issuance, subject to earlier vesting in the event of a change of control and subject to the policies of the Canadian Securities Exchange.
Upon vesting, each RSU entitles the holder to receive one common share of the Company in exchange.
ABOUT BILLY GOAT BRANDS
Billy Goat Brands is an investment issuer focused on investing in high-potential companies operating in the plant-based food technology sector. It intends to accomplish these goals through the identification of and investment in securities of private listed entities that are involved in the food and beverage industry, with a focus on: (i) plant-based protein, (ii) functional foods, (iii) food technology, (iv) fermented foods, and (v) cultured and cell agriculture. The Company plans to generate returns on its investments through various outcomes, including but not limited to go-public transactions, mergers or acquisitions, and the other liquidity events of its investee companies or projects. The paramount goal of the Company will be to generate maximum returns from its investments in a manner consistent with its environmental, social and governance values. For more information about the Company, please visit https://billygoatbrands.com/.
The Company's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on its profile page on SEDAR at www.sedar.com. The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING "FORWARD-LOOKING" INFORMATION
This news release contains certain forward-looking statements within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. The Company has provided the forward-looking statements in reliance on assumptions that it believes are reasonable at this time. All such forward-looking statements involve substantial known and unknown risks and uncertainties (including those risk factors identified in the Company's prospectus dated February 15, 2022), certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, delays resulting from or inability to obtain required regulatory approval. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect and the actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company is under no obligation, and expressly 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 expressly required by applicable law.
CONTACT INFORMATION
Billy Goat Brands Ltd.
Investor Relations
Email: info@billygoatbrands.com
Phone: 604-687-2038
Click here to connect with Billy Goat Brands Ltd. (CSE: GOAT), to receive an Investor Presentation
Billy Goat Expands Investment Thesis and Capital Deployment Mandates
Billy Goat Brands Ltd. (the "Company" or "GOAT") (CSE: GOAT), is pleased to announce the Company will look to expand its capital deployment mandate and diversify its investment portfolio to include accretive holdings in new market sectors, including the following:
- Industrials;
- Defence Technologies;
- Electrification;
- Critical Commodities;
- Energy; and,
- ETM Extraction.
The above stated verticals are expected to provide GOAT with exposure to historically anti-inflationary investments which mitigate reliance on unstable international supply chains. GOAT's management team and investment committee expect to retain exposure to its current plant-based products holdings. The Company has not yet identified potential investments in these sectors, and will advise shareholders as new opportunities are pursued.
ABOUT BILLY GOAT BRANDS
Billy Goat Brands is an investment issuer focused on investing in high-potential companies operating across a variety of sectors. The paramount goal of the Company will be to generate maximum returns from its investments. For more information about the Company, please visit https://billygoatbrands.com/.
The Company's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on its profile page on SEDAR at www.sedar.com. The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING "FORWARD-LOOKING" INFORMATION
This news release contains certain forward-looking statements within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. The Company has provided the forward-looking statements in reliance on assumptions that it believes are reasonable at this time. All such forward-looking statements involve substantial known and unknown risks and uncertainties (including those risk factors identified in the Company's prospectus dated February 15, 2022), certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, delays resulting from or inability to obtain required regulatory approval. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect and the actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company is under no obligation, and expressly 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 expressly required by applicable law.
CONTACT INFORMATION
Billy Goat Brands Ltd.
Investor Relations
Email: info@billygoatbrands.com
Phone: 604-687-2038
Click here to connect with Billy Goat Brands Ltd. (CSE: GOAT), to receive an Investor Presentation
Billy Goat Extends Special Warrants by Three Years
Billy Goat Brands Ltd. (the "Company" or "Billy Goat") (CSE: GOAT), announces that it proposes to amend the expiry date (the "Extension") of 19,675,000 outstanding share purchase warrants (the "Warrants") that were issued pursuant to a private placement of 19,675,000 special warrants (the "Special Warrants") on December 4, 2020.
The Special Warrants were issued at a price of $0.02 per Special Warrant and automatically converted to one unit (each, a "Unit") on September 10, 2021, being the date that was two days after the Company received a receipt for its final new issue prospectus from the British Columbia Securities Commission. Each Unit consisted of one common share and one Warrant. Each Warrant currently entitles the holder to purchase one additional common share of the Company at a price of $0.10 at any time prior to 5:00 p.m. (Vancouver time) on December 4, 2022. Subject to Canadian Securities Exchange approval, the Expiry Date of the Warrants will be extended three years to December 4, 2025. All other terms of the Warrants will remain the same.
ABOUT BILLY GOAT BRANDS
Billy Goat Brands is an investment issuer focused on investing in high-potential companies operating in the plant-based food technology sector. It intends to accomplish these goals through the identification of and investment in securities of private listed entities that are involved in the food and beverage industry, with a focus on: (i) plant-based protein, (ii) functional foods, (iii) food technology, (iv) fermented foods, and (v) cultured and cell agriculture. The Company plans to generate returns on its investments through various outcomes, including but not limited to go- public transactions, mergers or acquisitions, and the other liquidity events of its investee companies or projects. The paramount goal of the Company will be to generate maximum returns from its investments in a manner consistent with its environmental, social and governance values.
For more information about the Company, please visit https://billygoatbrands.com/. The Company's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on its profile page on SEDAR at www.sedar.com.
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING "FORWARD-LOOKING" INFORMATION
This news release contains certain forward-looking statements within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. The Company has provided the forward-looking statements in reliance on assumptions that it believes are reasonable at this time. All such forward-looking statements involve substantial known and unknown risks and uncertainties (including those risk factors identified in the Company's prospectus dated February 15, 2022), certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, delays resulting from or inability to obtain required regulatory approval. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect and the actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company is under no obligation, and expressly 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 expressly required by applicable law.
CONTACT INFORMATION
Billy Goat Brands Ltd.
Investor Relations
Email: info@billygoatbrands.com
Phone: 604-687-2038
Click here to connect with Billy Goat Brands Ltd. (CSE: GOAT), to receive an Investor Presentation
Food Security is Key to Agricultural Investing — Here’s Why
What is food security, and how does it relate to agricultural investing? For investors interested in making a profit — and a difference in the world — those two questions are worth answering.
Investors may be unfamiliar with the term food security, especially when combined with agricultural investing, but it’s simple to define. The UN Committee on World Food Security describes food security as “the condition in which all people, at all times, have physical, social and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.”
As that definition shows, there are both nutritional and economic aspects to food security. In fact, the UN Food and Agriculture Organization (FAO) has outlined four dimensions of food security: food utilization, physical availability of food, economic and physical access to food and stability of the first three factors over time.
While some areas of the globe can be considered food secure, those conditions do not exist the world over. Sadly, the absence of food security has many negative consequences. For example, it can lead to malnutrition and other health issues, which are problems that can shape a person’s life from childhood onward.
A lack of food security can also lead to problems at the city and country level — after all, those who are malnourished generally cannot work productively.
What factors influence food security?
Many organizations are working to improve food security through agricultural investment, but there are numerous challenges they must face. Often they have to address the issue from several different angles; in some cases, they may have to make emergency interventions, and in others they may make longer-term economic and educational efforts to improve a location’s ability to maintain food security.
One key issue that organizations focused on food security need to contend with is access to food. The World Food Programme asserts that there is currently enough food in the world to keep every one of its inhabitants healthy and active, but the problem is access. Fixing access problems requires looking at infrastructure, trade and economic conditions, and many organizations seek to address those factors.
Of course, the world’s growing population is also a major issue when it comes to food security. According to the FAO, the number of people facing severe food insecurity globally rose by 46 million people between 2020 and 2021. The organization estimates that nearly 828 million people are struggling with severe levels of food insecurity, representing nearly 10 percent of the world’s population.
When the amount of people facing moderate levels of food insecurity are accounted for, that figure rises to 2.3 billion worldwide who lack access to safe, nutritious and sufficient food sources.
What’s more, most population growth is expected to occur in developing countries in Asia and Africa, where access to the benefits of advanced agricultural technology is limited. Existing agricultural land is shrinking as well, meaning that it will be hard to plant new crops, creating the risk of food shortages and scarcity.
The FAO notes that as the world's population grows, the amount of arable land that can be used to grow food shrinks. The organization estimates that given today’s population growth projections, the amount of arable land per person in 2050 will be one-quarter of what was available in 1960.
Investing in agricultural technology that allows for higher crops yields and more sustainable farming practices is needed if global food insecurity is to be adequately addressed in the 21st century.
How to invest in food security?
As mentioned, many organizations focused on food security are addressing the issues above and the potential for a global food crisis. One way that they are doing so is through investment in agriculture.
Agriculture investment can come in many forms. The US has been the largest financial contributor to the FAO’s budget for decades. In the 2018/2019 period, the country contributed US$529 million to support the global food and agriculture sector, including crop forecasting, food safety, disaster assistance and sustainable agriculture.
In mid-2022, the Canadian government announced C$250 million to help address the global food security crisis, with a focus on the most vulnerable in Sub-Saharan Africa. As of the date of the announcement, Canada had already contributed C$514.4 million for worldwide humanitarian food aid over the course of the year.
But it’s not just governments and large organizations that can improve food security by investing in agriculture. Individual investors can do so as well, and those who are savvy with where they put their money may be able to make a profit. Generally, investment strategies for the agricultural sector involve investing in natural resources like potash and phosphate. Both potash and phosphate play a large role in preventing food insecurity as they provide the nutrients that are required to keep arable land fertile enough for crop cultivation and farming to take place.
For investing in potash, there are several large producers that currently dominate the market. It’s also important to understand the different types of potash fertilizers, including sulfate of potash (SOP) and muriate of potash (MOP).
However, since food security is a long-term issue, investing in exploration and development companies is important as well. There are plenty of companies developing potash projects all around the world; many are listed on the TSX and TSXV, and others are listed on the ASX.
Like potash, phosphate is also a necessary fertilizer for certain soils and is important to ensuring the global population has access to sustainable food. However, unlike potash, which is found in many places globally, phosphate is more scarce. Still, there are a fair number of phosphate-focused companies to choose from. You can learn more about phosphate investing by clicking here.
This is an updated version of an article originally published by the Investing News Network in 2014.
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Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Sage Potash: Supporting Agriculture With a Domestic Supply of Potash
Sage Potash is a Canadian company that intends to become a prominent domestic potash producer within the Paradox Basin situated in Utah through sustainable solution mining techniques. Sage Potash understands the importance of a positive environmental, social, and governance (ESG) rating. Therefore, the company has embraced a modern method of potash mining that has significantly less impact on the environment than historical methods of mining the mineral.
The company’s flagship project, Sage Plain Potash Property, is located in the Paradox Basin, potentially containing roughly two billion tons of potash. Utah is a mining-friendly jurisdiction with a steady supply of talented workers. In addition, the project has a robust infrastructure that includes road and electricity access that facilitates faster exploration and development.
Company Highlights
- Sage Potash is a Canadian based exploration and development company focused on developing a US domestic potash supply.
- Potash is an essential ingredient in fertilizer that helps increase crop yields and improves disease resistance.
- Sage Plain Potash Property, the company’s flagship project, is located in a Utah region known for hosting over two billion tonnes of potash.
- The company estimates that its flagship project will produce an initial amount of 175,000 tonnes of potash annually while also expanding the resource estimates to support 2MMT/yr.
- The deposit attributes contribute to lowest quartile production costs.
- Ideally situated to supply local and regional markets with lowest transportation costs.
- An experienced management team leads Sage Potash towards its goals, with experts in corporate management, corporate finance, and diverse experience throughout the resource sector.
This Sage Potash profile is part of a paid investor education campaign.*
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