1 November, 2018 - Rubicon announced today that ArborGen Inc ("ArborGen") has |
entered into a series of agreements with certain subsidiaries of TexMark |
Timber Treasury, L.P. ("Triple T") - a joint venture between CatchMark Timber |
Trust, Inc. and a consortium of large institutional investors, that recently |
completed the acquisition of Campbell Global's US$1.4 billion of timberlands |
located in Texas, US. |
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The primary agreement is a lease, pursuant to which ArborGen will lease the |
Triple T nursery and seed orchard properties located in Texas. This agreement |
includes a call option that gives ArborGen the right to acquire the leased |
properties, and a corresponding put option that gives Triple T the right to |
sell the leased properties, for US$2.5 million payable upon the expiration of |
the 5-year lease period. ArborGen's current intention is that it will |
exercise the call option at the end of the lease period. The lease agreement |
(and subsequent call option exercise) will allow ArborGen to increase its |
annual nursery production capacity and sales by approximately 30 million |
seedlings per annum (effective from the next production season beginning 1 |
April 2019 when the lease agreement takes effect), and also immediately |
expand its productive seed-orchard capacity (including advanced genetics |
seed) in the important Texas region. |