A company formed by Farmers of North America hopes to raise at least $24 million to build a prairie fertilizer distribution network.
Genesis Grain & Fertilizer has launched a fundraising offer that seeks to raise $24 to $117 million from farmer investors.
If successful, the money would be used to build at least one fertilizer distribution centre in southern Saskatchewan and possibly as many as six others at yet-to-be determined locations across Western Canada.
The centres would receive, blend and distribute bulk crop nutrients to prairie farmers and other fertilizer retailers.
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Each centre would include storage sheds, blending facilities and equipment to handle dry and liquid fertilizers.
They would also include loop track sidings and direct rail access, allowing them to receive and ship product by the train load.
Genesis spokesperson Bob Friesen said the company must raise a minimum of $24 million, which is enough to build the first centre at Belle Plaine, Sask., 40 kilometres west of Regina.
Belle Plaine is also the location of FNA’s proposed nitrogen manufacturing plant, known as Project N.
“The minimum raise is just over $24 million and the maximum raise is just over $117 million,” Friesen said.
“When we reach the minimum raise, we are ready to start building the first supercentre and when we reach the maximum raise, then of course we’re ready to build out all seven.”
Genesis Grain & Fertilizer is the same company that failed last year to buy a controlling interest in CWB.
It held a series of hastily organized town hall meetings late last summer to raise farmer capital.
Friesen said tight timelines imposed on the company derailed those efforts, but farmer interest in the idea was strong.
In its latest fundraising effort, Genesis is going back to farmers and offering equity in yet-to-be constructed assets that will give them an ownership stake in the lucrative commercial fertilizer industry.
Farmers who invest would be required to buy a minimum of 10 units in the company at a cost of $1,000 per unit.
At least $5,000 of the minimum $10,000 investment would be required up front. The remaining $5,000 can be offered in the form of a promissory note and/or in the form of unsold grain.
In return, farmers will receive tax benefits, an ownership stake in the company and a share of profits.
Friesen said Genesis is “keeping the door open” on the grain handling idea.
The proposed fertilizer centres and loop track sidings could accommodate high-throughput grain handling facilities if Genesis decided to pursue those opportunities in the future.
For more information, visit genesiusgranandfertilizer.com or call FNA. The initial closing date for the offering is April 31.
