Genesis Grain & Fertilizer’s (“Genesis”) plans to build a fertilizer sales and distribution business with the potential for grain handling facilities, in Western Canada.
Phase One is the construction of seven fertilizer distribution SuperCenters in western Canada. Phase Two involves building high-volume grain handling facilities adjacent to the fertilizer SuperCenters.
Phase 1 – Supercenters
Genesis will construct various “Supercenters” located strategically in Western Canada. Each Supercenter may consist of a combination of one or more of the following: a large flat storage shed with blending towers; liquid tanks with blending pumps; a loop track to provide for a grain terminal consisting of a concrete “house” with steel annex.
Supercenter distribution sites are proposed to be located along major highway routes with access to rail service and with enough space to build an appropriate rail siding either immediately or in the future.
Genesis is currently proposing seven supercenter locations in Western Canada: three in Alberta (including the Peace River region); three in Saskatchewan (including the Belle Plaine Supercenter, the proposed location of the ProjectN nitrogen fertilizer plant); and one in Manitoba.
The primary focus of this Offering is building out the Fertilizer Sales & Distribution Plan, with the intent to conduct subsequent capital raises focusing on grain handling and marketing.
Phase 2 – Grain Handling
Phase 2 of the Project is to complete the Grain Handling & Marketing Plan. Unless opportunities arise in the interim, Phase 2 of the Project will not commence for approximately two years from the Closing Date of this Offering.
Genesis Grain & Fertilizer plans to integrate high volume grain handling facilities with the proposed Supercenter sites as there are significant synergies in doing so.
While working toward completion of Phase 1 and in anticipation of Phase 2, Genesis Grain & Fertilizer will seek out various opportunities, whether it be access to west coast port facilities, partnerships with established independent grain handling entities or strategic alliances with other businesses such as producer car loaders, short line railways, in-land grain terminal operators, container shippers, and port terminal operators.
Farmers of North America (FNA) and AgraCity Crop & Nutrition (AgraCity) are offering a minimum of 15,300 units in Genesis Grain & Fertilizer, to a maximum of 117,200 units, for gross proceeds between $15.3MM and $117.2MM. Each unit will be sold at $1000 per unit, with a minimum subscription of ten units per investor.
The Limited Partnership Agreement provides that Units must be owned by “Farmers”. A “Farmer” is an individual or a corporation controlled by one or more individuals who has ever filed an income tax return reflecting farm income.
FNA Member Restriction
The Limited Partnership Agreement provides that Units must be owned by FNA Members. If a proposed farmer investor is not already an FNA Member, he or she can learn more by visiting FNA’s website at www.fna.ca/membership.
Benefits to investors include priority access to fertilizer, product discounts, and the potential to earn margins from the value chain.
Fertilizer Value Chain
It is expected that an investor will benefit through allocation of the incremental margins realized by the retailer, distribution, and the merchandising links in the value chain (noted in green).
AgraCity will provide sourcing, in-bound logistics, and selling services to Genesis, with a benefit to FNA Members who invest in Genesis Grain & Fertilizer via MPower Cash Rewards, off invoice discounts, and profit distribution by Genesis.
What Genesis Means to you:
- Priority access for your fertilizer needs
- Earn money from the distribution and retail markets
- De-risk your fertilizer by participating with hundreds of other farmers
- Be an owner in a world class fertilizer blending and distribution company
- Utilize a world class fertilizer team
- Create an opportunity for the advancement of ProjectN
Farmers of North America
Farmers of North America is a farm business alliance that is placing more market power in the hands of producers. FNA Members maximize their profitability through participation in FNA-negotiated programs and services and through discounts from a network of preferred suppliers. FNA is headquartered in Saskatoon, Saskatchewan, Canada, and has a network of staff across Canada and the U.S. serving over 10,000 farmers from coast to coast.
AgraCity’s core business is the procurement, production, packaging, sale and distribution of crop inputs and other ag-related products to stakeholders. AgraCity is focused on direct to farm input supply, sourced globally and delivered directly to FNA Members. With professional agronomic service specialists located across Canada and the U.S., AgraCity Business Representatives (ABRs) provide on-farm service to FNA Members.