SCOTTSDALE, AZ, April 10, 2019 /PRNewswire/ - AgJunction Inc. (TSX: AJX), the Autosteering Company™, announced today the future closing of its facilities in Fremont, California and Brisbane, Australia, along with related reductions in workforce, as the company continues its consolidation strategy into the existing corporate headquarters in Scottsdale, Arizona.
AgJunction continues to focus on its core strategy to grow the market for autosteering while improving its own operational efficiency. The company plans to close its Brisbane and Fremont facilities resulting in an approximate 25% reduction in workforce by year end. Affected employees are being offered severance and outplacement assistance.
"As we continue to focus on our strategic capabilities and building both our library of intellectual property and the revenue it generates, we are equally focused on aligning our operating expenses with our desire to produce long-term profitability for our shareholders," said Dave Vaughn, AgJunction's president and CEO. "These combined efforts follow the strategy we implemented last year to expand autosteering to all farmers by simplifying our solutions and our channels to market. I want to express my appreciation to all of our employees and their commitment to AgJunction and our customers as we continue to execute on our strategy."
AgJunction expects the consolidation of facilities and reduction in workforce to result in an approximate 11% decrease in operating expenses once fully implemented.
AgJunction Inc., the Autosteering Company™ is a global leader of advanced guidance and autosteering solutions for precision agriculture applications. Its technologies are critical components in over 30 of the world's leading precision Ag manufacturers and solution providers and it holds approximately 200 patents and patents pending in the US, Canada, Europe, South America and Australia. AgJunction markets its solutions under leading brand names including Novariant®, Wheelman™, and Whirl™ and is committed to advancing its vision by bringing affordable hands-free farming to every farm, regardless of terrain or size. AgJunction has locations in California, Arizona, and Australia, and is listed on the Toronto Stock Exchange (TSX) under the symbol "AJX." For more information, please go to AgJunction.com.
This press release contains forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws and is based on the expectations, estimates and projections of management of AgJunction as of the date of this news release, unless otherwise stated. The use of any of the words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information. These statements are only predictions and actual events or results may differ materially. Although the Company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, performance or achievement since such expectations are inherently subject to significant business, economic, competitive and political uncertainties and contingencies. In particular, forward-looking statements in this press release include, but are not limited to statements with respect to: the Company's focus and strategy; timing of closing its Brisbane, Australia and Fremont, California facilities; the anticipated reduction in workforce; and the anticipated reduction in operating expenses. Accordingly, readers should not place undue reliance on such forward-looking information contained in this press release.
In respect of the forward-looking information, AgJunction has provided such information in reliance on certain assumptions that it believes are reasonable at this time, including, but not limited to, the sufficiency of budgeted capital expenditures in carrying out planned activities; that AgJunction's future results of operations will be consistent with management expectations in relation thereto; availability of key supplies, components, services, networks and developments; the impact of increasing competition; conditions in general economic, agricultural and financial markets; demand for the Company's products; and the continuity of existing business relationships.
Since forward-looking information addresses future events and conditions, such information by its very nature involves inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to the risks associated with the industries in which AgJunction operates; competition; inability to introduce new technology and new products in a timely manner; legal claims for the infringement of intellectual property and other claims; negative conditions in general economic, agricultural and financial markets; and reduced demand for the Company's products. Readers are cautioned that the foregoing list of factors is not exhaustive.
Additional information on other factors that could affect the Company's operations or financial results, are included in reports of AgJunction on file with applicable securities regulatory authorities, including but not limited to, AgJunction's Annual Information Form which may be accessed on its SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is made as of the date hereof and AgJunction undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE Agjunction Inc.