Farmers Edge Completes $125.0 Million IPO On Toronto Stock Exchange
The Winnipeg, Manitoba based startup Farmers Edge inc (TSX: FDGE) is the latest firm to complete an initial public offering.
Farmers Edge are focused on digital agriculture and provide 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 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.