WESTLOCK, Alta. – Westlock Terminals officials raised almost one-quarter of the million dollars needed for its third share offering the first evening that investment shares were available for the farmer-owned terminal.
Interest was confirmed for another $250,000 in shares March 6 when the shares were initially offered to investors, said Bob Heck, general manager of Westlock Terminals Ltd.
It’s the third share offering for the company since a group of farmers and local businesspeople bought the former Agricore United elevator in 2002 as a new generation co-op, the first in the province.
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The first share offering in 2002 raised $1.3 million to buy the facility.
A second share offering in 2003, with no ending date for memberships and delivery incentive shares, was less successful, said Heck. Few people would make a commitment without a deadline. An April 9 deadline has been placed on the second share offering, which has since spurred membership interest, said Heck.
The latest investment share offering will also close April 9.
The terminal officials hope to raise $1 million with two Class C shares: the C-2 shares at $5,000 have a return of seven percent interest and the C-3 shares at $2,500 have a return of six percent interest.
The money raised will be used to upgrade the facility. A second elevator and annex were demolished in December to make room for a larger car spot and more modern grain storage. The rail car spot will increase from 42 to 52 or 53 car spots. Money has been allocated to upgrade the receiving and shipping leg, enlarge and upgrade the office and construct two storage bins and a rail access bridge.
Heck said the terminal’s grain handling should increase to about 160,000 tonnes a year from 130,000 tonnes.
“It’s growing in leaps and bounds,” said Heck of the company, which has found 800 customers in less than four years.
Many of the investors are farmers and businesspeople interested in hauling their grain to a local company.
“They like to have competition. What the farmers are telling me is they’re tired of the mergers and the consolidation of the elevator systems. They’re tired of the big companies telling them that the customers come along with the merger,” said Heck.
“They want to attach themselves to someone local and that will be competition to the larger companies.”
About half of the grain handled through the terminal is Canadian Wheat Board grain shipped to the West Coast.
Feed wheat and barley to the Fraser Valley is the terminal’s next largest customer.
