Fewer than three years after going public, Manitoba-based tech firm Farmers Edge is considering a privatization proposal.
Farmers Edge made the announcement via a media release on Nov. 16.
It said it had a received a non-binding proposal from its majority shareholder, Fairfax Financial Holdings Limited, which would see Fairfax acquire all common shares the company doesn’t already own at 25 cents per share.
When the company made its initial public offering (IPO) in March 2021, it did so at $17 per share.
Fairfax owns more than 61 per cent of Farmers Edge’s shares.
Farmers Edge said it has formed a committee of independent directors to evaluate the proposal and to “explore potential alternatives, including maintaining the status quo,” the news release said.
There is no timetable set for the committee to complete its review.
The digital agronomy firm has been beset by financial problems for some time. In August, it announced layoffs of 20 per cent of its workforce and consolidation of operations in North America. It also shuttered its Australian operation.
