NEW YORK, Sept. 15, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of American Farmland Company ("AFCO" or the "Company") in connection with the proposed acquisition of the Company by Farmland Partners, Inc. ("FPI"). On September 12, 2016, AFCO and FPI jointly announced that a definitive agreement for FPI to acquire all outstanding shares of AFCO in a stock-for stock transaction. Under the terms of the agreement, AFCO shareholders and operating partnership unitholders will receive 0.7417 of a newly issued FPI share for each AFCO share and unit they own.
WeissLaw is investigating whether AFCO's Board acted to maximize shareholder value prior to entering into the agreement. Notably, AFCO recently announced positive financial results. On August 15, 2016, the Company reported operating revenues of $3.1 million in the quarter ended June 30, 2016, compared to $2.8 million reported in the same period of the previous year. In addition, FPI announced it expected the transaction "to contribute approximately $16 million in revenue in 2016, increasing FPI's total revenue from $26 million to approximately $42 million." Finally, upon completion of the transaction, AFCO shareholders and unitholders will own a mere 35% of the newly combined company.