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Independent Reviews for Venture Investors

CSX.V - Budding.

Clean Seed Capital (CSX.V) is a designer of precision farming products. They are known for the CX-6 SMART Seeder which they distribute via Rocky-Mountain Equipment. In addition to their manufacturing alliances, CSX.V has a R&D Center in Saskatchewan where it test and develop their products.

CSX.V own its software platform, has a number of patents in precision seeding. and to date received $2.2M funding from The Government of Canada. The value proposition is relatively simple, reduce waste, promote control, and improve yields while reducing cost.

According to a Markets and Markets study, the planting equipment market is set to grow from roughly $16B in 2017 to an estimated $21B in 2022.

In the last 18 months, CSX.V has been very active.

Dec. 18 - Warrant Extension - application for TSX Venture Exchange approval to extend the term of its outstanding warrants by six months Clean Seed currently has 1,735,000 warrants outstanding, exercisable at $0.75, all of which are set to expire on January 4, 2019.

Nov. 6 - Jim Walker, Former CASE IH Vice President of North America, Joins Clean Seed Board of Directors

Oct. 16 - Gary Anderson (former CEO of Ag Growth International – TSE: AFN) to serve as President of Clean Seed. He co-founded Ag Growth International (AGI) in 1996, a TSX listed company, serving as its COO until late 2010, at which time he became CEO.

Aug. 27 -Shareholder Update on the acquisition of Harvest International Inc., and on strategic vision going forward.

Harvest International

Harvest has a full suite of market accepted, commercially available offerings that include the highly recognized and widely praised LASERPRO1 and LASERPRO2 planter row technologies; and the fully customizable 40’ – 60’ planter frames, including the UltraPlant6. The farmer focused technological advantages of both companies will cross pollinate between the CX-6 SMART Seeder and Harvest Planter, blurring the lines between a planter and a seeder, including the introduction of precision singulation metering at the opener for all crops from corn to canola.

Strategic Vision

1. Expands intellectual patent portfolio with key farmer focused planter components. Only three competitor historically: John Deere, Case, Kinze.

2. Secures a modern 75,000 square foot state of the art manufacturing facility for internal production, quality control and development facilities.

3. Leverage Harvest International well developed 120 member regional dealer network across the U.S.

4. Expands Canadian offering through Rocky Mountain Equipment's network.

5. Strengthen performance and distribution of CX-6 SMART Seeder

CSX.V is working on closing Harvest International acquisition and completing a financial statement audit for reporting purposes. CSX.V will be announcing a comprehensive business plan for the combined Clean Seed and Harvest operations.

Jul. 17 - Acquire Harvest International, Inc. (“Harvest International”) for $13M USD and future additional earn-out considerations.

Jun. 22- Closed a non-brokered private placement for 3.2M shares at $0.50 per Share, for gross proceeds of CDN $1.6M (the “Offering”)

May 31 - Granted its individual point, high resolution, multiple variable rate metering innovation patents in Ukraine, China and Australia.

Clean Seed granted 200,000 options to a consultant, 37,500 options to an officer and 100,000 options to a director, all during April 2018. The options granted are exercisable from $0.44 to $0.50 per share. All options granted are exercisable for a term of five year

Mar. 8 - Received funding from Farm Credit Canada (FCC) for the current production run of its CX-6 SMART Seeder™ program.

Clean Seed also advises it has granted 75,000 options to its consultant and 25,000 options to an officer. The options granted to consultants are exercisable at $0.60 and the options granted to its officer are exercisable at $0.55

Feb 7 - US Patent Awarded: The patent secures individual point, high resolution, multiple product variable rate metering. The precision metering and/or blending of multiple crop input types and a spectrum of nutrients delivered on a single row in a single pass. The United States contributes over 30% of all planter related global crop production is the most valuable marketplace for seeding and planting equipment market in the world.

Jan. 24 - Approved for the patent box incentive program under the Saskatchewan Commercial Innovation Incentive (SCII). The program lowers the Saskatchewan corporate income tax rate from 12% to 6% per cent for 15 years commencing anytime in the future at the Company’s discretion.

Jan. 18 - Received a purchase order with a retail list value of $9 million for its CX-6 SMART Seeder™ and SMART Cart™.

In addition to generating a $9M purchase order in early 2018, CSX.V received a number of patents in US, Ukraine, China and Australia. CSX.V also made a synergistic acquisition of Harvest International which specializes in the planter vertical. Like CSX.V, Harvest International manages the manufacturing of their products for which they hold a number of patents.

Much of the funds raised and options granted have been above the current valuation. In fact, upcoming warrants are issued at $0.50 to $0.75 cents. As per August 2018 corporate update, CSX.V is focused on consolidating the assets with Harvest International and working toward securing financing for a manufacturing plant. Other objectives are cross dealer network optimizations in both Canada and the US,

Not convinced? Have a listen to this Capital Ideas Research piece of Mark Bunting with Fabrice Taylor. By the look of it CSX.V seems to be budding.

DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The content of rally is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions - rally cannot take responsibility for your investment decisions.


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