Deveron Announces Implementation of Cost Optimization Program

Rhea-AI Summary

Deveron Corp. (TSXV: FARM) announces the implementation of a $1.5 million cost optimization program, resulting in $2,400,000 in annual run rate savings. The company has reduced field staff and ancillary support costs within its carbon business unit to prioritize profitable fertility-related field services execution and focus. Deveron's President and CEO, David MacMillan, stated that the cost adjustments have better aligned the company's network capacity with profitable service regions and its core fertility business, allowing for further opportunities to deliver increasing soil volumes to the labs and creating significant operating leverage for the business ahead.

Toronto, Ontario--(Newsfile Corp. - December 6, 2023) - Deveron Corp. (TSXV: FARM) ("Deveron" or the "Company"), a leading agriculture data company in North America, announces that the Company has implemented another phase of its cost optimization program. In a continued effort to prioritize profitable fertility related field services execution and focus, Deveron has implemented $1.5 M in cost savings mainly through the reduction of field staff and ancillary support costs within the Company's carbon business unit. The Company expects to achieve annual run rate savings totaling approximately $2,400,000 when combined with the previous $900,000 of cost synergies announced on November 21, 2023.

"Over the previous 24 months, we expanded our fields teams to serve the carbon field work volumes that our customers forecasted," commented David MacMillan, Deveron's President, and CEO. "We have been early leaders in non-traditional agriculture soil testing products, but now we have refocused our resources to better match our capacity with volumes. With these cost adjustments, the Company has better aligned its network capacity with profitable service regions and its core fertility business. With a focused strategy to build an integrated service offering for our customers, we believe there will be many further opportunities to deliver increasing soil volumes to the labs, creating significant operating leverage for the business ahead."

About Deveron

Deveron is an agriculture technology company that uses data and insights to help farmers and large agriculture enterprises increase yields, reduce costs and improve farm outcomes. The company employs a digital process that leverages data collected on farms across North America to drive unbiased interpretation of production decisions, ultimately recommending how to optimize input use. Our team of agronomists and data scientists build products that recommend ways to better manage fertilizer, seed, fungicide, and other farm inputs. Additionally, we have a national network of data technicians that are deployed to collect various types of farm data, from soil to drone, that build a basis of our best-in-class data layers. Our focus is the US and Canada where 1 billion acres of farmland are actively farmed annually.

For more information and to join our community, please visit www.deveron.com.

Philip Linton
VP Corporate Development
plinton@deveron.com
Tel: 647-622-0076

"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX

Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."

This news release includes certain "forward-looking statements" within the meaning of that phrase under Canadian securities laws. Without limitation, statements regarding future plans and objectives of the Company are forward-looking statements that involve various degrees of risk. Forward-looking statements reflect management's current views with respect to possible future events and conditions and, by their nature, are based on management's beliefs and assumptions and subject to known and unknown risks and uncertainties, both general and specific to the Company. Although the Company believes the expectations expressed in such forward-looking statements are reasonable, such statements are not guarantees of future performance and actual results or developments may differ materially from those in our forward-looking statements. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward-looking statements: changes in the worldwide price of agricultural commodities, general market conditions, risks inherent in agriculture, the uncertainty of future profitability and the uncertainty of access to additional capital. Additional information regarding the material factors and assumptions that were applied in making these forward-looking statements as well as the various risks and uncertainties we face are described in greater detail in the "Risk Factors" section of our annual and interim Management's Discussion and Analysis of our financial results and other continuous disclosure documents and financial statements we file with the Canadian securities regulatory authorities which are available at www.sedarplus.ca. The Company undertakes no obligation to update this forward-looking information except as required by applicable law. The Company relies on litigation protection for forward-looking statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/189971

FAQ

What is the name of the agriculture data company in North America mentioned in the press release?

The agriculture data company in North America mentioned in the press release is Deveron Corp.

What is the ticker symbol for Deveron Corp.?

The ticker symbol for Deveron Corp. is FARM.

What cost optimization program has Deveron Corp. implemented?

Deveron Corp. has implemented a $1.5 million cost optimization program.

How much annual run rate savings is Deveron Corp. expecting to achieve from the cost optimization program?

Deveron Corp. is expecting to achieve annual run rate savings totaling approximately $2,400,000 from the cost optimization program.

Who commented on the cost adjustments made by Deveron Corp.?

David MacMillan, Deveron's President and CEO, commented on the cost adjustments made by the company.

What is the focus of Deveron Corp.'s resources after the cost adjustments?

After the cost adjustments, Deveron Corp. has refocused its resources to better match its capacity with volumes and to build an integrated service offering for its customers.