GrowMax Resources to acquire Fertimar Mineração e Navegação Ltda.

Lead Office

Toronto

On August 28, 2018, GrowMax Resources Corp. announced that it has entered into an agreement with Parsec Capital LP and Four Joses Holdings Limited to acquire Fertimar Mineração e Navegação Ltda. Under the terms of the agreement, GrowMax will acquire all of the issued and outstanding shares of PrimaSea Holdings Ltd., the company which wholly-owns Fertimar, in exchange for 213,925,645 common shares of GrowMax which will represent 50% of the issued and outstanding shares of GrowMax, for an approximate value of C$32.5 million. 

The acquisition will offer several benefits to GrowMax's shareholders, including a significant asset with a multi-generational lithothamnion supply, access to the Latin America market, and opportunities for growth future consolidation. The acquisition has been unanimously approved by GrowMax's board of directors, and already has the support of the holders of over 32% GrowMax shares.

GrowMax Resources is a TSXV-listed Canadian company with mineral exploration and development assets bearing phosphate and potassium-rich brine resources in the Bayovar Basin in Peru.

Fertimar Mineração e Navegação Ltda., operating under the name Primasea Nutrição Animal e Vegetal, is a privately-held established Brazilian producer and seller of lithothamnion-based organic animal feed and plant fertilizer products. PrimaSea is currently beneficially owned by Brazilian entrepreneur Eduardo Marinho Christoph and Paulo C. de Gouvêa, a Brazilian mining executive and investor with more than 20 years of experience.

McCarthy Tétrault LLP is advising GrowMax with a team led by Frederico Marques that includes Gary Litwack, René Sorell, Etienne Ravilet Guzman, Nathan Robb and Curtis Merry.

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