Ceres Global Ag Corp. Completes Fully Subscribed $75 million Rights Offering

TORONTO, Dec. 4, 2014 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the "Corporation") (TSX: CRP) is pleased to announce the completion of its previously announced rights offering (the "Rights Offering") in Canada and the United States.  The Rights Offering was fully subscribed and as such, Ceres has issued 12,842,465 common shares for aggregate gross proceeds of approximately $75 million, which will be primarily used by Ceres to further construct and develop its Northgate Commodities Logistics Centre project. 

Upon completion of the Rights Offering, the three stand-by purchasers, VN Capital Management, Whitebox Advisors and Highbridge Capital Management, will each control or own, through their affiliates, approximately 39.9%, 8.8% and 6.0%, respectively, of the company's outstanding common shares while other shareholders have subscribed for an aggregate of approximately $19.5 million of the Rights Offering. As an additional vote of confidence for the Corporation, President and CEO, Patrick Bracken also purchased 20,000 common shares of Ceres for the week ending November 28, 2014.

"The completion of the rights offering is a major milestone for Ceres and we thank our existing shareholders, especially VN Capital, Whitebox and Highbridge, for giving us the vote of confidence to execute our Northgate strategy," said Patrick Bracken. "Presently, our horizontal build out of Northgate is near completion, with two rail loops and a temporary grain transloader now onsite.  We have already purchased significant amounts of grain from southern Saskatchewan farmers and we expect to start shipping grain out of Northgate in mid-December once the US Customs trailer at the site is completed. Following that, BNSF has committed the necessary resources to ensure that Northgate is well served as we start up."

Ceres has also hired Paul Ferguson as General Manager of Energy at Northgate to lead its new energy business development efforts.  The Corporation is currently exploring a number of potential options that will transport Bakken crude oil and natural gas liquids (NGLs) from the Northgate site.

"We are very pleased to be investing side-by-side with Ceres' shareholders to fund the exciting Northgate project," said James Vanasek, Principal of VN Capital and Ceres Board Member.  "We believe that its development under the leadership of Ceres' new management team will transform the company and generate profitable returns that will benefit all shareholders."

About Ceres Global Ag Corp. (ceresglobalagcorp.com)

Ceres Global Ag Corp. is a Toronto-based company focused on two primary businesses: a Grain Storage, Handling and Merchandising unit, anchored by its 100% ownership of Riverland Ag Corp., and a Commodity Logistics unit, containing its 25% interest in Stewart Southern Railway Inc. and its development of the Northgate, SK Commodity Logistics Centre. Riverland Ag Corp. is a collection of nine (9) grain storage and handling assets in Minnesota, New York, and Ontario having aggregate storage capacity of approximately 47 million bushels. Riverland Ag also manages two (2) facilities in Wyoming on behalf of its customer-owner. Stewart Southern Railway Inc. is a short-line railway with a range of 130 kilometres that operates in South-eastern Saskatchewan. The Northgate Commodities Logistics Centre is a proposed $96 million grain, oil and oilfield supplies transloading site being developed in conjunction with Riverland Ag and several potential energy company partners, connected to BNSF Railway.

Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws regarding the use of proceeds from the Offering and the development, construction and prospects of the Northgate Commodities Logistics Centre.  Forward-looking information in this news release are subject to a number of risks and uncertainties that could cause actual events or results to differ materially from current expectations, including risks regarding the transportation and grain industry, economic factors, receipt of regulatory approvals, and the ability of Ceres to move commodities via BNSF, and many other factors beyond the control of Ceres.  Forward-looking statements speak only as of the date on which they are made and Ceres undertakes no obligation to update forward-looking information if circumstances or management's expectations should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE: Ceres Global Ag Corp.

Jennifer Wood, TMX Equicom, [phone] ext. 226, [email protected]