Ceres Global Ag Corp. announces it has entered into a settlement agreement with The Scoular Company to settle the pending lawsuit filed by Scoular against Ceres in the United States District Court of the District of Minnesota.
As previously disclosed, Scoular had sought injunctive relief and damages relating to the proposed joint development and construction of a grain facility at the Cere's Northgate Commodity Logistics Centre in Saskatchewan.
As part of the settlement, Ceres will pay $11.25 million in cash to Scoular, and Scoular will release all claims against Ceres relating to the subject matter of the lawsuit.
The settlement includes reimbursement for contributions made during the development of Northgate. Ceres had already taken a $3 million reserve against a potential liability in connection with this lawsuit and will therefore recognize a loss of $8.25 million in the financial statements.
"Settling this case enabled Ceres to avoid significant trial litigation costs and eliminate risks associated with a trial by jury," says Robert Day, president and CEO at Ceres. "Therefore, we are pleased to have it behind us and we look forward to continuing with our long-term growth plans."
