November 16, 2023
Dear Valued Shareholders,
Amidst the challenges in the venture capital markets, we maintain our steadfast commitment to advancing the commercialization of our IP portfolio. Our technology is actively contributing to winter wheat seeding in Northern India with our MINI - MAX in collaboration with our valued partners.
Recent positive developments in political relations between Canada and India are encouraging, following regrettable headlines and tension generated by the Canadian Prime Minister in September.
We hold firm in our belief that the private sector will not only endure but thrive, driven by the substantial potential inherent in the partnership between our two nations. As we navigate the dynamic landscape in India, particularly with our SMART Seeder technology and other business interests, we maintain our dedicated momentum with Mahindra & Mahindra and our stakeholders to deliver on our MOU. While there have been delays, we anticipate finalizing our definitive agreements within 2023.
Most recently, on November 3rd, we proudly announced that we have received an additional patent in Mexico for our flow control technology. This technology holds a pivotal role in the variable rate metering system utilized in the SMART Seeder, emphasizing our competitive edge in the market. We are pursuing sales and distribution partnerships in Mexico for our technology.
We anticipate that the manufacturing and assembly of SMART Seeder MINI-MAX™ units for Mexico and other regions will be conducted in collaboration with our partners in India. These units will then be shipped worldwide as whole goods, reflecting our commitment to global expansion and strategic partnerships.
Clean Seed continues to actively pursue M&A opportunities both domestically and internationally, targeting synergistic growth, enhanced working capital and access to strategic acquisitions. Recognizing that our IP portfolio is not adequately valued in the current public capital markets, we are shifting our focus towards a strategic alliance model, believing it to be more conducive to capturing the true value of our assets, while also assessing other capitalization alternatives for immediate funding.
We are proactively working to address the recent delay in our audited financial statements and settle matters with our previous auditor. This involves not only rectifying the immediate filing concerns but also selecting a proficient team to collaboratively drive our ongoing business activities, placing a particular emphasis on our M&A endeavors and ongoing financial growth requirements.
As previously announced, the Company has been granted a Management Cease Trade Order by the British Columbia Securities Commission. The Company is providing an update on the status of the filing of its annual financial statements, accompanying management's discussion and analysis, related CEO and CFO certifications and annual information form for the financial year ended June 30, 2023 (collectively, the "Annual Filings").
The Company is continuing to work diligently and expeditiously to complete and file the Annual Filings and settle matters with our previous auditor.
The Company intends to follow the provisions of the Alternative Information Guidelines set out in National Policy 12- 203 for so long as the Annual Filings are outstanding, including the issuance of bi-weekly default status reports in the form of news releases, all of which will be filed on SEDAR+. The Company confirms that there is no other material information concerning the affairs of the Company that has not been generally disclosed as of the date of this press release.
We are thoroughly evaluating various strategies to maximize the value of our technology portfolio, recognizing its potential to positively impact the agricultural system for decades to come. Our dedicated team is diligently exploring all available options to secure the optimal outcome for our shareholders. Our commitment is unwavering in ensuring that the lasting benefits of our innovations are realized, and true value is shared with our stakeholders.
Regards,
Graeme Lempriere
Chairman and CEO
About Clean Seed Capital Group Ltd.
The common shares of Clean Seed Capital Group Ltd. are listed on the TSX Venture Exchange and trade under the symbol “CSX”.
We are a team of innovators and business management professionals with a proven track record of game changing innovation and production of patented agricultural technologies at an incredibly high level. We pride ourselves as progress facilitators that turn solutions for modern agricultural problem into commercially viable products to fulfill new demand.
Clean Seed’s SMART Seeder MAX™ technologies are revolutionary seeding tools that utilize the unique synergy of sophisticated electronic metering and intuitive software control putting row-by-row variable rate technology at the forefront of agricultural innovation. Our innovations create a new class of highly accurate seeding equipment designed specifically for today’s farmer.
For further information please contact us at info@cleanseedcapital.com and visit our website at www.cleanseedcapital.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements Regarding the Annual Filings
This news release contains “forward-looking information” within the meaning of the applicable Canadian securities legislation pertaining to the timing, review, completion and filing of the Annual Filings, and duration of the MCTO; and other forward-looking information concerning the intentions, plans and future actions of the parties described herein and the terms thereon.
Factors that could cause actual results to differ materially from those described in such forward-looking information include, but are not limited to, the Company may not be able to raise the funds necessary to complete the audit of its annual financial statements; it may not complete its audit and file the Annual Filings as currently anticipated, or at all; and the Company may be subject to a general cease trade order in the event that the Annual Filings are not completed and filed in the time anticipated.
The forward-looking information in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. In connection with the forward-looking information contained in this news release, the Company has made assumptions about the Company’s ability to complete and file the Annual Filings. The Company has also assumed that no significant events occur outside of the Company's normal course of business. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Cautionary Statement Regarding Other Forward-Looking Information
This news release includes certain “forward-looking statements” as defined under applicable Canadian securities legislation. All information and statements contained herein that are not clearly historical in nature constitute forward-looking information, and the words “anticipate”, “estimate”, “believe”, “continue”, “could”, “expects”, “intend”, “plans”, "postulates", "predict", “will”, “may” or similar expressions suggesting future conditions or events or the negative of these terms are generally intended to identify forward-looking information. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Clean Seed disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.