Input Capital Corp. Comments on Canola Markets

Input Capital Corp. Comments on Canola Markets

Canada NewsWire

REGINA, March 27, 2019 /CNW/ - Input Capital Corp. ("Input" or the "Company") (TSX Venture: INP) (US: INPCF) today provided the following update to shareholders regarding recent canola headlines involving Canada's canola trade with China:

Input's canola sales program for 2018 crop and the revenue associated with it is unaffected by the trade issues with China because:

  • Input sells canola primarily to domestic canola crushing plants whose customers tend to be in Canada and the USA, not overseas. Only a small percentage of Input's canola sales are into the overseas canola seed export market.
  • Approximately 95% of Input's sales of 2018 crop are complete and the remaining 5% has been contracted for sale for several months at higher prices than prevail today. For example, for a recently delivered canola load, Input was paid proceeds of $495.40 net per tonne, even though the spot bid price at the same location is $409.40 net per tonne.

Recent market fluctuations reinforce the value of Input's marketing and mortgage streams to farmers:

  • Our marketing stream clients are receiving about $470 net per tonne this year, compared to spot bids today of $410 to $425 per tonne, depending on location.
  • Our mortgage streams offer a guaranteed canola price for the term of the mortgage. This price certainty helps farmers plan ahead and sleep at night without worries about market fluctuations.

We encourage and support the Canadian government's efforts to end the uncertainty currently being faced by western Canadian farmers by resolving these trade issues as soon as possible.

ABOUT INPUT

Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. The Company has developed several flexible and competitive forms of financing which help western Canadian canola farmers solve working capital, mortgage finance and canola marketing challenges and improve the financial position of their farms. Under a streaming contract, Input provides capital in exchange for a stream of canola via multi-year fixed-volume canola purchase contracts. To a farmer, Input is like a virtual grain company, buying canola and providing financial solutions. To canola buyers, Input is like a large virtual farm which produces and sells canola over a large geographically diverse footprint, but does not own the land, or equipment or operate the farm. In production terms, Input is the largest canola farm in the world.

Input plans to continue to grow and diversify its low cost canola production profile by entering into streaming contracts with canola farmers across western Canada. Input is focused on farmers with quality production profiles, excellent upside yield potential, and strong management teams.

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Forward Looking Statements

This release includes forward-looking statements regarding Input and its business. Such statements are based on the current expectations and views of future events of Input's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Input, including risks regarding the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of Input. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Input undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

SOURCE Input Capital Corp.

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