Farmers Edge Completes $125.0 Million IPO On TSX

Farmers Edge inc (TSX: FDGE) is the latest firm to complete an initial public offering, or IPO transaction. The company is set to begin trading today on the TSX following the closing of a $125.0 million IPO transaction.

Farmers Edge is focused on digital agriculture, whereby it provides farmers with what it refers to as “cutting-edge solutions powered by a unique combination of field-centric data, artificial intelligence, and complete integration.” The company currently has 40.7 million common shares outstanding, 21.0% of which are not held by major shareholders.

The financing saw a total of 7.4 million common shares of the issuer sold at a price of $17.00 per share. An over-allotment option has also been issued by the company, which is valid for a period of 30 days, that could see the financing expanded by up to $18.8 million if fully-exercised.

Proceeds from the initial public offering will see $80.0 million go towards strengthening the firms financial position, $14.5 million used to repay outstanding debt, and $20 million used for working capital.

Following the close of the transaction, Fairfax Financial Holdings remains the largest holder of the company, whom exercises control over 25,023,193 shares of the company, or approximately 61.5% of the outstanding shares of the issuer. The position was amassed following the conversion of certain outstanding debentures and warrants, as well as prior shares held before the firm went public.

Operationally, the company posted negative cash flow from operations of $74.9 million in 2019, as well as negative EBITDA of $74.2 million. Pro forma for 2020, the company has indicated that it will be posting negative EBITDA between $29 to $33 million, while pro forma negative cashflow for 2020 is between $37 to $41 million. As a result, net proceeds from the offering are currently expected to be used to fund future operations.


Information for this briefing was found via Farmers Edge and Sedar. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Leave a Reply

Video Articles

Endeavour Mining Q1 Earnings: Cash Flow Is King

G Mining Oko West Feasibility: Move Fast, Break.. Nothing?

New Gold Q1 Earnings: What’s Behind The Market’s Surprising Reaction?

Recommended

First Majestic Posts Record Cash Flows In Q1 As Production Costs Fall

Brazil Potash Secures Funding In Support Of US$2.5 Billion Autozales Project

Related News

Israeli Tech Firm SaverOne Set To Close US$13 Million Nasdaq IPO

Transportation tech platform SaverOne 2014 Ltd. (Nasdaq: SVRE, SVREW) started trading on the Nasdaq on...

Tuesday, June 7, 2022, 02:22:00 PM

Fintech SPAC Prime Number Acquisition I Prices US$60 Million IPO

Special purpose acquisition company Prime Number Acquisition I Corp (Nasdaq: PNACU) started trading its securities...

Monday, May 16, 2022, 02:23:00 PM

Air Sanitation Manufacturer AeroClean Technologies Prices US$25 Million IPO

Pathogen elimination technology company AeroClean Technologies, Inc. (Nasdaq: AERC) started publicly trading on the Nasdaq...

Wednesday, November 24, 2021, 02:19:00 PM

European Investment Firm-Backed SPAC Springwater Special Situations Eyes US$150 Million IPO On Nasdaq

Special purpose acquisition company Springwater Special Situations Corp. (Nasdaq: SWSSU) started trading its securities on...

Thursday, August 26, 2021, 01:10:00 PM

Tech SPAC Denali Capital Acquisition Prices US$75 Million IPO

Special purpose acquisition company Denali Capital Acquisition Corp. (Nasdaq: DECAU) started trading publicly on the...

Friday, April 8, 2022, 02:19:00 PM