Ceres Global Announces Settlement Agreement with The Scoular Company
Minneapolis, MN, October 4, 2018 – Ceres Global Ag Corp. (“Ceres” or the “Company”) (TSX: CRP) today announced that it had entered into a settlement agreement with The Scoular Company (“Scoular”) to settle the pending lawsuit filed by Scoular against Ceres in the United States District Court of the District of Minnesota. As previously disclosed, Scoular had sought injunctive relief and damages relating to the proposed joint development and construction of a grain facility at the Company’s Northgate Commodity Logistics Centre (“Northgate”).
As part of the settlement, the Company will pay US$11.25 million in cash to Scoular and Scoular will release all claims against Ceres relating to the subject matter of the lawsuit. The settlement includes reimbursement for contributions made during the development of Northgate. The Company had already taken a US$3.0 million reserve against a potential liability in connection with this lawsuit and will therefore recognize a loss of US$8.25 million in the financial statements.
“Settling this case enabled Ceres to avoid significant trial litigation costs and eliminate risks associated with a trial by jury,” said Robert Day, President and Chief Executive Officer at Ceres. “Therefore, we are pleased to have it behind us and we look forward to continuing with our long-term growth plans.”