Farmers Edge is set to become a publicly-traded company as soon as next week, as the digital agriculture company founded in Pilot Mound, Manitoba, in 2005 has filed its final prospectus with Canadian securities regulators.
The company says its initial share price is set at $17, with total proceeds projected at C$125 million. An over-allotment option to sell additional shares over the following 30 days could bring in another $18 to $19 million, according to the company’s prospectus.
The amount Farmers Edge anticipates raising has increased by 25 per cent since it announced plans to go public and raise $100 million two weeks ago. The Globe and Mail is reporting there has been heavy investor demand.
The offering is expected to close on or about March 3, 2021. The company says it expects common shares will begin trading on the TSX under the symbol “FDGE” on the closing date.
According to the prospectus, upon closing, Fairfax Financial Holdings — the largest investor in Farmers Edge — will directly and indirectly own 61.5 per cent of the company.
The company says it intends to use around half of the IPO proceeds to strengthen its financial position and to pursue growth strategies. An undisclosed amount will also go to pay off debt to certain Fairfax shareholders.
In addition to Fairfax, Osmington and Mitsui & Co. are also major external backers.
The company reports an overall loss (EBITDA) of approximately $74 million in 2019 in the prospectus, following EBITDA of $76 million in 2018, and $54 million in 2017. At the same time, revenues have climbed from around $14 million in 2017 to $18 million in 2018 and to nearly $24 million in 2019. The average loss per subscribed acre has also been decreasing, as the company says the number of acres where its services are deployed has climbed from 6.2 million in 2017 to an estimated 23.4 million at the end of 2020.