Canbud Distribution Corp. (CSE: CBDX) ("Canbud" or the "Corporation") is pleased to announce that, further to its news release of August 9, 2021, it has entered into a definitive merger agreement (the "Merger Agreement") with Steep Hill, Inc. ("Steep Hill") and Canbud Merger Sub, Inc. ("Subco"), a wholly-owned subsidiary of Canbud, on December 7, 2021 pursuant to which it agreed to acquire all of the outstanding securities of Steep Hill by way of a triangular merger (the "Transaction"). The Transaction is subject to receipt of all necessary regulatory approvals and certain other conditions as described below.
Steep Hill is a leading cannabis science company with significant footprints in lab testing and research and development. Steep Hill's foundation was built on testing and analyzing medical and recreational cannabis to ensure compliance with current safety standards. In 2008, Steep Hill opened the first commercial cannabis lab in the United States. With the goal of helping the rest of the world adopt "best practices" in cannabis testing, the Steep Hill also provides expert consulting services in the United States and elsewhere in the world.
Under the terms of the Merger Agreement, the parties agreed to complete the Transaction, pursuant to which Subco will merge with Steep Hill under the Delaware General Corporation Law and continue as a new corporation, wholly-owned by Canbud, and the holders of shares of Steep Hill (the "SH Shares") immediately prior to the merger will receive 0.096 of a common share of Canbud (each, a "Canbud Share") for each SH Share, or an aggregate of 82,000,000 Canbud Shares, in exchange for their SH Shares. In addition, upon closing of the Transaction, the Corporation will issue 2,870,000 Canbud Shares as an advisory fee (the "Advisory Fee Shares").
Upon closing of the Transaction, the holders of SH Shares prior thereto are expected to own approximately 34.01% of the outstanding Canbud Shares on a non-diluted basis and before giving effect to the issuance of any Advisory Fee Shares. The Canbud Shares issued in exchange for SH Shares will be subject to resale restrictions, such that the holders thereof will be permitted to trade 25% of such Canbud Shares on the date that is four months from the closing date of the Transaction, and a further 25% of such Canbud Shares on the dates that are seven, 10 and 13 months after the closing date.
Upon closing of the Transaction, all directors of Steep Hill are expected to resign, while key Steep Hill management personnel are expected to continue in their respective positions of the merged entity carrying on the business of Steep Hill.
Completion of the Transaction is subject to a number of conditions, including, without limitation, the following:
Steve Singh, CEO of Canbud stated: "The Steep Hill combination represents a key growth strategy for Canbud to expand into the United States and Mexico. Coupled with the acquisition of Molecular Science Corp. in July, Canbud is now well-positioned to be a leading participant in the cross-border analytical testing services industry. With the potential for federal deregulation in the United States, Canbud will be uniquely situated to partner with Canadian and U.S. Multi -State Operators ("MSOs") to provide regulatory and consumer safety testing services. Given the extensive geographic footprint of Steep Hill, combined with the strong technical expertise across the combined company, we have laid the foundation for a strong and sustainable business model."
Nigel Stobart, CEO of Steep Hill, added: "We are pleased to join with Canbud to address what both companies believe to be an incredibly attractive global cannabis testing market. Not only will Canbud provide financial resources to accelerate Steep Hill's continued geographic expansion, it will also provide Steep Hill's existing and future licensees with a global platform of plant-based science leadership. Steep Hill currently has licensee partnerships in 11 territories across the U.S. and Mexico, and we look forward to expanding that footprint upon completion of the Transaction. Canbud recognizes the value of the Steep Hill brand name in the cannabis testing marketplace, and we are pleased that it will continue on after the Proposed Transaction."
The Transaction is an arms' length transaction for the Corporation and, if completed, will not constitute a fundamental change or result in a change of control of the Corporation, within the meaning of the policies of the Canadian Securities Exchange.
Completion of the Transaction is subject to a number of conditions, including the approval of the merger by Steep Hill's shareholders. There can be no assurance that the transaction will be completed as proposed or at all.
Canbud is an early-stage science and technology company focused on providing products and services within the hemp and cannabis space. The Company's focus is on two strategic initiatives: (i) Science and technology - to provide science-backed differentiated products and services that are critical within the sector, and (ii) Quality and compliance - to ensure all products and services meet the highest standards of quality, safety and adherence to compliance standards and requirements.
The information in this news release includes certain information and statements about management's view of future events, expectations, plans and prospects that constitute forward looking statements. Forward looking statements in this news release include, but are not limited to, management's expectations with respect to the potential of the Transaction to contribute to the Corporation's growth potential and strategy, and its ability to generate revenue and the completion of the Transaction. These statements are based upon assumptions that are subject to significant risks and uncertainties, including assumptions that all conditions to closing of the Transaction will be satisfied, that the Transaction will be completed and assumptions about the operations, financial condition and future performance of Steep Hill and the Corporation. Although the Corporation considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect, and the forward looking statements in this news release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that required approvals and the satisfaction of material conditions have not been obtained in connection with the Transaction, and the risk that the Transaction is not approved or completed on the terms set out in the definitive agreement between the parties. Although the Corporation's management believes that the expectations reflected in forward looking statements are reasonable, the Corporation can give no assurances that the expectations of any forward looking statements will prove to be correct. Except as required by law, the Corporation disclaims any intention and assume no obligation to update or revise any forward looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward looking statements or otherwise.
For further information, please contact:
Robert Tjandra, President Tel: 416-847-7312 Email: ir@canbudcorp.com
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/107083
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What is food security, and how does it relate to agricultural investing? For investors interested in making a profit — and a difference in the world — those two questions are worth answering.
Investors may be unfamiliar with the term food security, especially when combined with agricultural investing, but it’s simple to define. The UN Committee on World Food Security describes food security as “the condition in which all people, at all times, have physical, social and economic access to sufficient safe and nutritious food that meets their dietary needs and food preferences for an active and healthy life.”
As that definition shows, there are both nutritional and economic aspects to food security. In fact, the UN Food and Agriculture Organization (FAO) has outlined four dimensions of food security: food utilization, physical availability of food, economic and physical access to food and stability of the first three factors over time.
While some areas of the globe can be considered food secure, those conditions do not exist the world over. Sadly, the absence of food security has many negative consequences. For example, it can lead to malnutrition and other health issues, which are problems that can shape a person’s life from childhood onward.
A lack of food security can also lead to problems at the city and country level — after all, those who are malnourished generally cannot work productively.
Many organizations are working to improve food security through agricultural investment, but there are numerous challenges they must face. Often they have to address the issue from several different angles; in some cases, they may have to make emergency interventions, and in others they may make longer-term economic and educational efforts to improve a location’s ability to maintain food security.
One key issue that organizations focused on food security need to contend with is access to food. The World Food Programme asserts that there is currently enough food in the world to keep every one of its inhabitants healthy and active, but the problem is access. Fixing access problems requires looking at infrastructure, trade and economic conditions, and many organizations seek to address those factors.
Of course, the world’s growing population is also a major issue when it comes to food security. According to the FAO, the number of people facing severe food insecurity globally rose by 46 million people between 2020 and 2021. The organization estimates that nearly 828 million people are struggling with severe levels of food insecurity, representing nearly 10 percent of the world’s population.
When the amount of people facing moderate levels of food insecurity are accounted for, that figure rises to 2.3 billion worldwide who lack access to safe, nutritious and sufficient food sources.
What’s more, most population growth is expected to occur in developing countries in Asia and Africa, where access to the benefits of advanced agricultural technology is limited. Existing agricultural land is shrinking as well, meaning that it will be hard to plant new crops, creating the risk of food shortages and scarcity.
The FAO notes that as the world's population grows, the amount of arable land that can be used to grow food shrinks. The organization estimates that given today’s population growth projections, the amount of arable land per person in 2050 will be one-quarter of what was available in 1960.
Investing in agricultural technology that allows for higher crops yields and more sustainable farming practices is needed if global food insecurity is to be adequately addressed in the 21st century.
As mentioned, many organizations focused on food security are addressing the issues above and the potential for a global food crisis. One way that they are doing so is through investment in agriculture.
Agriculture investment can come in many forms. The US has been the largest financial contributor to the FAO’s budget for decades. In the 2018/2019 period, the country contributed US$529 million to support the global food and agriculture sector, including crop forecasting, food safety, disaster assistance and sustainable agriculture.
In mid-2022, the Canadian government announced C$250 million to help address the global food security crisis, with a focus on the most vulnerable in Sub-Saharan Africa. As of the date of the announcement, Canada had already contributed C$514.4 million for worldwide humanitarian food aid over the course of the year.
But it’s not just governments and large organizations that can improve food security by investing in agriculture. Individual investors can do so as well, and those who are savvy with where they put their money may be able to make a profit. Generally, investment strategies for the agricultural sector involve investing in natural resources like potash and phosphate. Both potash and phosphate play a large role in preventing food insecurity as they provide the nutrients that are required to keep arable land fertile enough for crop cultivation and farming to take place.
For investing in potash, there are several large producers that currently dominate the market. It’s also important to understand the different types of potash fertilizers, including sulfate of potash (SOP) and muriate of potash (MOP).
However, since food security is a long-term issue, investing in exploration and development companies is important as well. There are plenty of companies developing potash projects all around the world; many are listed on the TSX and TSXV, and others are listed on the ASX.
Like potash, phosphate is also a necessary fertilizer for certain soils and is important to ensuring the global population has access to sustainable food. However, unlike potash, which is found in many places globally, phosphate is more scarce. Still, there are a fair number of phosphate-focused companies to choose from. You can learn more about phosphate investing by clicking here.
This is an updated version of an article originally published by the Investing News Network in 2014.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Both potash and phosphate are used to produce fertilizers, which are becoming increasingly important as demand for food grows.
However, potash and phosphate play different roles in crop growth and cannot be used interchangeably. Each has different applications designed for the specific requirements of a particular crop, climate, soil type or topography.
Investors interested in fertilizer companies should be aware of the difference between potash and phosphate. This knowledge can help guide investment decisions and can ultimately lead to increased profitability.
Below is a basic breakdown of the differences between potash and phosphate and why both can be compelling choices for investors.
Potash is a potassium-based product that is often bonded to other chemicals. It is mainly used as a fertilizer to encourage water retention in plants, increase crop yields, improve taste and help plants resist disease. The most common potash fertilizers are sulfate of potash (SOP) and muriate of potash (MOP).
Before it can be turned into commercial fertilizers like SOP and MOP, potash ore must be extracted from the ground and then refined. There are two predominant varieties of potash ore: sylvinite and carnallite. Sylvinite typically has a higher value compared to carnallite as it requires less energy to separate the potassium chloride it contains than it does to separate the magnesium in carnallite.
Potash ore is extracted in two ways. In conventional underground mining, ore is dug out by large machines and transported to the surface. This method is expensive, but also the most common.
Solution mining is less common, and involves injecting hot brine (a salt water solution) below the surface of the Earth and into an orebody. The potash-brine water is then pumped back to the surface for cooling and separation in surface ponds.
Interestingly, many companies are focused on extracting potash ore from ancient underground oceans of potassium salts, and these are often located hundreds of feet or more below the surface. This can complicate the process of getting the ore out of the ground.
Canada is the world’s top potash producer, and also holds the largest reserves. Other global producers include Russia, China and Belarus.
Want to learn more about potash and potash investing? Click here to check out our overview of the market, and read up on ASX-, TSX- and TSXV-listed potash stocks by clicking here and here.
Phosphate is critical for all living organisms, from potatoes to people, and as much as 90 percent of it is used as a soil nutrient in support of plant growth. Its primary function is to support strong cell development and water retention.
Phosphate rock, or “phos-rock,” is ore that contains phosphorus. It is located at various depths, and extraction typically requires large dragline buckets, which scoop up the material for refinement. The phos-rock is then beneficiated, or refined, with small phosphate pebbles being left behind.
Those phosphate particles are coated with hydrocarbons during flotation, and then float to the surface for further separation. The resulting product is beneficiated phosphate rock. Its phosphorus pentoxide content is suitable for phosphoric acid or elemental phosphorous production.
Beneficiated phosphate rock is often upgraded into granular diammonium (DAP) or monoammonium phosphate (MAP), both of which are high-grade, water-soluble fertilizers that can be applied to crops. Single super phosphate is a cheaper alternative to the popular DAP and is obtained through a chemical reaction between rock phosphate and sulfuric acid.
The world’s top producer of phosphate rock by a wide margin is China. The US, Morocco and Western Sahara and Russia are also key phosphate rock producers.
Interested in getting more details on phosphate and phosphate investing? Our overview of the market can be found by clicking here, and we’ve put together a list of phosphate-focused companies here.
This is an updated version of an article originally published by the Investing News Network in 2013.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Sage Potash is a Canadian company that intends to become a prominent domestic potash producer within the Paradox Basin situated in Utah through sustainable solution mining techniques. Sage Potash understands the importance of a positive environmental, social, and governance (ESG) rating. Therefore, the company has embraced a modern method of potash mining that has significantly less impact on the environment than historical methods of mining the mineral.
The company’s flagship project, Sage Plain Potash Property, is located in the Paradox Basin, potentially containing roughly two billion tons of potash. Utah is a mining-friendly jurisdiction with a steady supply of talented workers. In addition, the project has a robust infrastructure that includes road and electricity access that facilitates faster exploration and development.
This Sage Potash profile is part of a paid investor education campaign.*
Billy Goat Brands Ltd. (the " Company " or " Billy Goat Brands ") (CSE: GOAT), an investment issuer focused on identifying, sponsoring and incubating ESG-focused companies in the plant-based food technology sector on their way to bespoke liquidity events, is pleased to announce it has closed the non-brokered private placement of 16,150,000 special warrants (" Special Warrants ") at a price of $0.05 per Special Warrant for gross proceeds of $807,500. Each Special Warrant is convertible into units (the " Units ") with each Unit consisting of one common share (the " Shares ") of the Company and one transferable common share purchase warrant (the " Warrants "), with each Warrant entitling the holder thereof to purchase one additional Share of the Company at a price of $0.10 per Share for a period of 60 months from the date of issuance of the Warrants.
All securities are subject to a four-month hold period pursuant to applicable securities laws of Canada, after which time the Special Warrants are convertible into the Units.
Billy Goat Brands is an investment issuer focused on investing in high-potential companies operating in the plant-based food technology sector. It intends to accomplish these goals through the identification of and investment in securities of private listed entities that are involved in the food and beverage industry, with a focus on: (i) plant-based protein, (ii) functional foods, (iii) food technology, (iv) fermented foods, and (v) cultured and cell agriculture. The Company plans to generate returns on its investments through various outcomes, including but not limited to go-public transactions, mergers or acquisitions, and the other liquidity events of its investee companies or projects. The paramount goal of the Company will be to generate maximum returns from its investments in a manner consistent with its environmental, social and governance values.
For more information about the Company, please visit https://billygoatbrands.com/. The Company's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on its profile page on SEDAR at www.sedar.com .
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING "FORWARD-LOOKING" INFORMATION
This news release contains certain forward-looking statements within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. The Company has provided the forward-looking statements in reliance on assumptions that it believes are reasonable at this time. All such forward-looking statements involve substantial known and unknown risks and uncertainties (including those risk factors identified in the Company's prospectus dated February 15, 2022), certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, delays resulting from or inability to obtain required regulatory approval. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect and the actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Billy Goat Brands Ltd. Investor Relations Email: info@billygoatbrands.com Phone: 604-687-2038
News Provided by GlobeNewswire via QuoteMedia
Billy Goat Brands Ltd. (the " Company " or " Billy Goat Brands ") (CSE: GOAT), an investment issuer focused on investing in high-potential companies operating in the plant-based food technology sector, is pleased to announce the appointment of Alex Benger as a director of the Company.
Mr. Benger is an accomplished leader and entrepreneur with experience in the biotech and plant-based sectors. Alex Benger also has several years of experience in marketing having led several creative digital marketing strategies over a variety of industries. He holds a Bachelor's in Economics and a Minor in Business from the University of Victoria.
Furthermore, the Company is pleased to appoint Lawrence Hay as Corporate Secretary, replacing Jan Urata effective immediately. The Company would like to thank Mrs. Urata for her valuable contributions to date and wishes her the best of luck with her future endeavours.
Billy Goat Brands is an investment issuer focused on investing in high-potential companies operating in the plant-based food technology sector. The paramount goal of the Company will be to generate maximum returns from its investments in a manner consistent with its environmental, social and governance values.
For more information about the Company, please visit https://billygoatbrands.com/ . The Company's final prospectus, financial statements and management's discussion and analysis, among other documents, are all available on its profile page on SEDAR at www.sedar.com .
The CSE has neither approved nor disapproved the contents of this news release. Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
CAUTIONARY STATEMENT REGARDING "FORWARD-LOOKING" INFORMATION
This news release contains certain forward-looking statements within the meaning of such statements under applicable securities law. Forward-looking statements are frequently characterized by words such as "anticipates", "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed", "positioned" and other similar words, or statements that certain events or conditions "may" or "will" occur. The Company has provided the forward-looking statements in reliance on assumptions that it believes are reasonable at this time. All such forward-looking statements involve substantial known and unknown risks and uncertainties, certain of which are beyond the Company's control. Such risks and uncertainties include, without limitation, delays resulting from or inability to obtain required regulatory approval. The reader is cautioned that the assumptions used in the preparation of the forward-looking statements may prove to be incorrect and the actual results, performance or achievements could differ materially from those expressed in, or implied by, these forward-looking statements. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits, including the amount of proceeds, the Company will derive therefrom. Readers are cautioned that the foregoing list of factors is not exhaustive. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Lawrence Hay, Director Billy Goat Brands Ltd. Email: info@billygoatbrands.com Phone: +1 (604) 687-2038
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There was a time when the food supply chain was at once simple, localized and cyclical. But those days are far behind us. As the world's population has continued to increase, demand for food has far outstripped the production capacity of simple agriculture.
Today, the food supply chain is incredibly complex, with multiple supply chain layers, billions of actors and trillions of transactions. Unfortunately, owing at least partially to this complexity, it is also increasingly unstable and increasingly prone to either disruption or interruption. Food insecurity is a growing problem in both the developed and underdeveloped worlds, and it has grown exponentially worse due to recent events.
Even major economies such as the US are affected. Potassium — one of three critical materials in agriculture — is in short supply, as the country only produces roughly 5 percent of what it needs domestically.
As global supply chains continue to grow more unstable, it's imperative that the US establish its own domestic supply of critical agricultural materials.
Nearly every country in the world experienced rising food prices this year.
The cause is multifold. Several disruptive events during the course of the pandemic, from COVID-19 itself to incidents such as a container ship blocking the Suez Canal for six days and the Australian wildfires already laid the foundation for widespread supply chain instability. Now, amidst labor shortages, soaring fertilizer costs and currency devaluations, the war in Ukraine has created what the United Nations Office for the Coordination of Humanitarian Affairs terms a perfect storm for food insecurity.
"This situation would be difficult under any circumstances, but rising food prices are coming after a series of challenges that have already increased costs, reduced income, and exacerbated instability," an OCHA press release reads. "It is expected that 1.7 billion people — 553 million of which are already poor, and 215 million are already undernourished — are severely exposed to at least one of the Ukraine crisis’s three global channels of transmission: rising food prices, rising energy prices, and tightening financial conditions."
The World Bank adds to this, predicting that in the coming months, access to fertilizers will represent a significant challenge for agricultural producers, noting that Russia and Belarus are major exporters that together account for 38 percent of potassic fertilizers worldwide.
It's important to note that world hunger and food insecurity are not new problems, however. In 2017, for instance, over 821 million people faced chronic food deprivation. The causes, according to nonprofit World Vision, include poverty, climate change, economic slowdown and geopolitical instability.
Conflict remains the primary culprit, accounting for 60 percent of all issues with the global food supply chain and an estimated 80 percent of UN humanitarian funding needs.
However, food insecurity is not something that only affects underdeveloped nations or ones in conflict. It's estimated that even in rich, highly developed countries, up to 20 percent of the population may experience household food insecurity. In the US, this is an issue that overwhelmingly affects people of color — Feeding America estimated that 21.3 percent of Black individuals experienced food insecurity in 2020 versus the national average of approximately 12.5 percent. In 2019, before the pandemic, people of color were still disproportionately affected by food insecurity, with 15.8 percent of Latino people, 19.3 percent of non-Hispanic Black people and 23.5 percent of Indigenous people affected compared to 8.1 percent of non-Hispanic white people.
The solution to this insecurity, both domestically and internationally, is not an easy one. But it starts with a focus on agriculture. Farms and the entities that supply them with materials such as fertilizer are the bedrock of food supply.
When the bedrock crumbles, everything else goes down with it.
Agriculture has always been extremely important to civilization. It was agricultural advancements that eventually allowed humanity to create history's first cities. It was agricultural advancements that allowed those cities to flourish into societies, then kingdoms, then countries.
And it's agricultural advancements that are simultaneously the cause and the solution to our current supply chain challenges.
As mentioned, the modern food supply chain is incredibly complex. Rather than individual farms and farmers providing for their communities, its focus is on high productivity, high inputs, high volume, centralization and value. Farms, leveraging feed and fertilizer provided to them by input suppliers, send crops and livestock to be processed.
Once processed, the food is then sent to distributors, which transmit them to retailers that finally sell the finished product to consumers. There are many potential points of failure in this supply chain. But none are quite so pronounced as issues with distribution — particularly concerning fertilizer supply.
Large-scale farming is highly reliant on synthetic fertilizers consisting primarily of nitrogen, potassium and phosphorus, the three elements most essential to plant growth.
Nitrogen promotes growth, leaf expansion and biomass-yield production. Phosphorus is crucial to photosynthesis. Finally, potassium — primarily sourced from various salts known collectively as potash — increases yield, supports plant growth, improves disease resistance and enhances water preservation.
Farms and farmers have an ongoing need to replenish all three of these materials. Unfortunately, the world is currently facing a global shortage of both nitrogen and phosphorus, made worse by a concurrent potash deficit. Currently, Canada is the world's largest producer of potash, followed by Russia, Belarus and China.
Given that many investors are currently eyeing Canada to potentially fill the global gap in potash production, the US needs to scale up domestic production. It cannot afford to rely solely on its trading partners. Contending with global shortages and addressing the food crisis requires that every world leader do its part.
Domestic production must be scaled up.
The good news is that although there are few public US companies that work primarily in potash, there are still several that show considerable promise. Many of these organizations operate in the Paradox Basin in Utah, which contains roughly 25 percent of potash deposits in the US.
These deposits are extremely underdeveloped. Currently, there is only one mine in the area, Cane Creek, owned and operated by Intrepid Potash (NYSE:IPI), the country's largest producer of potash. Intrepid Potash also owns a mine near Carlsbad, New Mexico, and Wendover, Utah.
Paradox Basin is hardly unique in terms of underdevelopment, mind you. The US Geological Survey estimates that there are 7 billion metric tons of potentially accessible potash in the US.
Sage Potash is among the companies looking to develop those deposits. The company has adopted a more modern approach to potash production. Known as solution mining, it involves drilling down to a potash deposit then injecting a heated brine solution.
Once the solution dissolves the potash, it is then pumped to a solar evaporation pond on the surface, where the mineral re-crystallizes as the water dissipates. This technique is more cost effective, efficient and environmentally friendly than traditional potash production, which typically involves underground mines or strip mining.
Another company involved in potash production in the US is Nutrien (TSX:NTR,NYSE:NTR).
Food insecurity is a pressing global issue and it's only going to get worse. The first step in addressing the problem is to ensure farms and farmers have the materials they need to scale up production. Potash-producing companies will play a pivotal role in this, and the potash market could well represent a compelling investment opportunity as a result.
This INNSpired article is sponsored by Sage Potash. This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Sage Potash in order to help investors learn more about the company. Sage Potash is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Sage Potash and seek advice from a qualified investment advisor.
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