AGT and Fairfax close strategic investment transaction

On August 31, 2017, AGT Food and Ingredients Inc. ("AGT") announced that it successfully closed its previously announced transaction with Fairfax Financial Holdings Limited, through certain subsidiaries (collectively, "Fairfax"), pursuant to which Fairfax agreed to invest C$190 million in AGT in exchange for the issuance by AGT of 5.375% interest bearing securities and common share purchase warrants.

Pursuant to the transaction, Fairfax purchased, on a private placement basis, preferred securities in an aggregate amount of C$190 million. The Preferred Securities are unsecured obligations of the Company, maturing in 99 years and guaranteed by certain of AGT's subsidiaries. AGT also issued 5,714,286 warrants, each exercisable to acquire one common share in the capital of AGT at a price of C$33.25 per share for a period seven years.

The securities issued in connection with the transaction are subject to a hold period which will expire four months and one day from the date of closing, being January 1, 2018.

AGT is a processor of value-added pulses, staple foods and ingredients for export and domestic markets as well as a supplier of retail packaged and canned foods to retail and food service sectors.

Further information can be found on Canada Newswire's website.