Farmers Edge has entered into an agreement with its largest shareholder to take the company private, pending approval from other shareholders.
The deal would see a subsidiary of Fairfax Financial Holdings, which owns approximately 61 per cent of the common shares in the digital agriculture company, purchase the remaining shares for a price of C$0.35 a piece.
The purchase price represents a slight increase from the original $0.25 offer by Fairfax in November, and an approximately 98 per cent devaluation from the $17 per share price at Farmers Edge’s initial public offering on the TSX in March 2021.
The deal is expected to close in the first quarter of 2024, subject to shareholder and court approvals, after which the company (FDGE) would be de-listed from the TSX. The company says it plans to hold a shareholder meeting to vote on the transaction around March 12, 2024.
Farmers Edge was founded as an agronomic service business in Pilot Mound, Manitoba, in 2005, and grew into a multinational digital agriculture company providing sensor technology aimed at helping farmers make decisions on millions of acres of farmland in more than half a dozen countries.