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Summary
- Digital agriculture startup Farmers Edge Inc is on track to launch its initial public offering (IPO) for a listing on the Toronto Stock Exchange (TSX), the firm announced on Tuesday.
- It expects an IPO size of about C$ 100 million, which could climb to C$ 115 million if an over-allotment option is implemented.
- It has estimated an IPO price in the range of C$10 to C$ 17 per share.
Digital agriculture startup Farmers Edge Inc has joined the queue of Canadian businesses set to go public soon, the company announced on Tuesday, February 9. Having submitted its preliminary prospectus with the required regulatory bodies, the firm is now on track to launch its initial public offering (IPO) for a listing on the Toronto Stock Exchange (TSX).
Farmers Edge was co-founded by CEO Wade Barnes at Manitoba’s Pilot Mound in 2005. It is known for using advanced technologies such as artificial intelligence (AI) to help support farmers boost their crop yields.
Let’s dive in to find out more about Farmer Edge’s upcoming IPO.
Key Highlights of Farmers Edge IPO
Farmers Edge reported in its latest prospectus that it expects an IPO size of about C$ 100 million, which could climb to C$ 115 million if an over-allotment option is implemented.
It has estimated an IPO price in the range of C$10 to C$ 17 per share.
The pricing date is expected to fall near the end of this month, around February 22, with a closing date in the week of March 1.
Farmers Edge said that it plans to use about half of the proceeds generated from its IPO to boost its current financial position and pursue growth strategies. It also intends to use an undisclosed sum of the capital to clear some debt it owes to certain Fairfax shareholders.
©Kalkine Group 2020
Toronto-based Fairfax Financial Holdings Limited (TSX:FFE) happens to be one of its top investors, along with investment service Osmington Inc and Japanese firm Mitsui & Co.
Once listed on the TSX, its stocks traded under the ticker of ‘FDGE’, the company said.
Farmers Edge Latest Financials
Farmers Edge’s annual revenues climbed notably from C$ 14.3 million in 2017 to C$ 18.1 million in 2018 to C$ 23.8 million in 2019, as reported in the IPO prospectus.
In the first nine months of 2020, the agriculture startup recorded a revenue of about C$ 26.7 million.
It incurred an operating loss of C$ 55.6 million and a net loss of C$ 67.5 million in the nine months ending 30 September 2020. Both the numbers were comparatively down from that of C$ 66.1 million and C$ 83.8 million, respectively, in the same period in 2019.
