AGT Net Earnings Jump

TORONTO - May 11/16 - SNS -- AGT Food and Ingredients Inc. reported net earnings of CDN $27.006 million on sales of $441.393 million for the first quarter ending March 31, compared to net earnings of $546,000 on sales of $385.23 million during the same three on th period last year.

In releasing its quarterly results, AGT said it will pay a $0.15 per share dividend for the quarter, or $0.60 per share on an annualized basis.

The company said its food ingredients and packaged foods segment was consistent and represented 12.2% of total tons invoiced during the quarter, compared to 14% last year.

"We are pleased with the consistency with which our business is performing across our segments," said Murad Al-Katib, President and CEO of AGT. "While products in Canada are near depleted due to strong customer demand-led export programs, the harvest in Australia has been a positive contributor and we may see record levels of lentils and peas in Canada in 2016, which we expect will extend positively to our business."

Rights Plan

AGT also announced details of Rights Plan intended to encourage fair treatment of shareholders should there be a take-over bid for the outstanding common shares of AGT.

AGT stressed that the "Rights Plan is not being adopted in anticipation of, or in response to, any known take-over bid or similar transaction, nor is the Board aware of any pending or threatened take-over bid for the Company that would trigger the provisions of the Rights Plan at this time. The Rights Plan is not intended to prevent take-over bids."

Under the terms of the Rights Plan, one right (a "Right") will be issued by the Company in respect of each outstanding common share. The Rights issued under the Rights Plan become exercisable only if a person acquires 20% or more of AGT's outstanding common shares without complying with the "Permitted Bid" provisions of the Rights Plan or without the approval of the Board. In this event, Rights holders (other than the offeror, its affiliates, associates and joint actors) can acquire common shares at a substantial discount to the prevailing market price at the time that the Rights become exercisable.

'Permitted Bids' under the Rights Plan must be made to all holders of AGT's common shares and must be open for acceptance for a minimum of 105 days (which period may be reduced in certain circumstances). If at the end of such prescribed period at least 50% of the outstanding common shares (other than those owned by the offeror, its affiliates, associates and joint actors) have been tendered and not withdrawn, the offeror may take up and pay for the common shares but must extend the take-over bid for a further 10 days to allow other shareholders to tender to such take-over bid.