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Attention Business Editors
Alliance Grain Traders to Acquire Tradewind Commodities
TORONTO, July 23 /CNW/ - Alliance Grain Traders Income Fund (the "Fund")
(TSX-V:AGT.UN) is pleased to announce that its wholly-owned operating
subsidiary Alliance Pulse Processors Inc. ("Alliance") has entered into a
memorandum of understanding (the "Memorandum") for the acquisition of the
assets of Tradewind Commodities Ltd. ("Tradewind"), a leading pulse and
special crops processor located in Milestone, Saskatchewan, approximately 60
km south of Regina.
The Memorandum is an expression of intent subject to the negotiation and
execution of formal agreements. Completion of the transaction will be subject
to a number of conditions, including the receipt of all necessary regulatory,
stock exchange and unitholder approvals and the completion of satisfactory due
diligence reviews, in addition to customary closing conditions. The
transaction was negotiated at arm's length and is targeted to close on August
1, 2008.
The Memorandum proposes that the Alliance will acquire 100% of the assets
used by Tradewind in its business, including land (which will be acquired from
an affiliate of Tradewind), buildings, equipment, leases, customer lists,
trademarks and goodwill, for cash. The proposed financial terms of the
transaction cannot be disclosed until formal acquisition agreements are
entered into, due to a confidentiality agreement between the parties.
"This acquisition bolsters the Fund's processing capacity on the Regina
Plains and allows us to capitalize on excellent rail service with Canadian
Pacific Railways (CP). Tradewind is a strategic asset that will solidify our
bulk processing and freight capacity and allow us to have strong linkages
North to South into the USA and Mexico," explains Murad Al-Katib, President
and CEO of Alliance Pulse Processors and Chairman of the Board of Trustees.
There can be no assurance that the transaction will be completed as
proposed or at all. The Fund expects to incur legal, accounting, financial
advisory and regulatory costs in connection with the transaction. The Fund
will be liable for these costs even if the transaction is not completed.
Cautionary Statements
Certain statements in this press release are forward-looking statements.
The reader is cautioned that assumptions used in the preparation of such
information, although considered reasonable by the Fund at the time or
preparation may prove to be incorrect.
Forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Fund (including its operating subsidiaries) to be
materially different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such risks and
uncertainties include, among others, the actual results of harvests,
fluctuations in the price of lentils and other crops, failure of plant,
equipment or processes to operate as anticipated, accidents, or labour
disputes, risks relating to the integration of acquisitions or to
international operations, as well as those factors referred to in the section
entitled "Risk Factors" in the prospectus of the Fund dated December 30, 2004
which is available on SEDAR at www.sedar.com, and which should be reviewed in
conjunction with this document. Although the Fund has attempted to identify
important factors that could cause actual actions, events or results to differ
materially from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward-looking
statements.
The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
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/For further information: Murad Al-Katib, Chairman of the Board of
Trustees, President and CEO, Alliance Pulse Processors, Tel: (306) 525-4490,
Email: trade@saskcan.com/
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