BUSINESS

Crop processor Legumex Walker signs strategic deal with Scoular Co.

10/27/2014 04:30 EDT | Updated 12/27/2014 05:59 EST
WINNIPEG - U.S. agricultural marketing firm the Scoular Co. has agreed to invest $16.5 million in crop processing company Legumex Walker Inc. (TSX:LWP) as part of a new strategic alliance.

Under the agreement, Scoular has also agreed to a long-term deal that will see it procure canola seed for processing at Legumex's Pacific Coast Canola plant and market the canola meal and canola oil produced.

Scoular's investment in Legumex Walker will be in the form of a $16.5-million convertible debenture.

The debenture will have an interest rate of 7.75 per cent and will be convertible at Scoular's option into Legumex Walker shares at $6.75 per share.

Legumex Walker shares were down 20 cents at $4.15 on the Toronto Stock Exchange on Monday.

Legumex Walker has 15 processing plants in Canada, the United States and China as well as an 84 per cent stake in Pacific Coast Canola.