Deveron Announces Receipt of Demand Letter with Respect to Unsecured Loans Totaling $4,726,600

Rhea-AI Summary

Deveron has received a demand letter from two unsecured creditors for repayment of loans totaling $4,726,600. These loans, including $400,949 in accrued interest, were issued to fund the acquisition of a 67% stake in A&L Laboratories Canada East. The demand letter calls for repayment by May 30, 2024. The creditors involved are Directors and Officers of A&L Laboratories. Deveron is currently exploring its options to address these debts.

Positive

• Deveron is actively assessing its options to resolve the debt issue, showing proactive management.
• Directors and Officers of A&L Laboratories, who are also creditors, may have vested interests in resolving the matter amicably.

Negative

• The demand letter for repayment of $4,726,600 plus $400,949 in interest could strain Deveron's financial position.
• A short repayment deadline of May 30, 2024, increases financial pressure.
• The loans are unsecured, posing higher risk for Deveron in case of default.

Toronto, Ontario--(Newsfile Corp. - May 27, 2024) - Deveron Corp. (TSXV: FARM) ("Deveron" or the "Company"), a leading agriculture services and data company in North America, announced today that it has received a letter (the "Demand Letter") from two unsecured creditors demanding repayment of the unsecured loans evidenced by promissory notes dated May 20, 2022 (collectively, the "Loans") issued by Deveron in connection with the acquisition of a 67% interest in A&L Laboratories Canada East, Inc. ("A&L") no later than May 30, 2024.

The loans have aggregate principal amounts of $4,726,600, with accrued interest at maturity amounting to $400,949. The unsecured creditors are Directors and Officers of A&L Laboratories Canada East, Inc. The Company is actively assessing its options to resolve these debts.

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 drones, 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/investors or reach us on Twitter @Deveron.

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

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 world-wide 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/210676

FAQ

What is the amount Deveron is being asked to repay?

Deveron is being asked to repay a total of $4,726,600 in loans plus $400,949 in accrued interest.

When is the repayment deadline for Deveron's unsecured loans?

The repayment deadline for Deveron's unsecured loans is May 30, 2024.

Who are the creditors demanding repayment from Deveron?

The creditors are Directors and Officers of A&L Laboratories Canada East.

What was the purpose of the loans issued to Deveron?

The loans were issued to fund the acquisition of a 67% stake in A&L Laboratories Canada East.

What is the total amount of interest accrued on Deveron's loans?

The total amount of interest accrued on Deveron's loans is $400,949.