Agricore United Completes Post-Merger Financings

United Grain Growers Limited merged with Agricore Cooperative Ltd. on November 1, 2002 to form Agricore United, one of Canada’s leading agribusinesses. On December 17, 2001, Agricore United completed its treasury and secondary offering of 13 million limited voting common shares at $8 per share. The treasury offering consisted of approximately 6.7 million shares for total gross proceeds to Agricore United of approximately $53.7 million, while the secondary offering of approximately 6.3 million shares for total gross proceeds of approximately $50.7 million related to the assisted sales programme established by the company. This programme was established to assist the former shareholders and equity members of Agricore Cooperative to sell, in an orderly manner, limited voting common shares they received in connection with the recent merger. Scotia Capital Inc. and National Bank Financial Inc. led the underwriting syndicate that included CIBC World Markets Inc., RBC Dominion Securities Inc., HSBC Securities (Canada) Inc., Pollitt & Co. Inc. and Wellington West Capital Inc.

Agricore United intends to use the net proceeds from the treasury offering to reduce outstanding indebtedness. Proceeds from the secondary offering will be paid to the former shareholders and equity members of Agricore Cooperative who participated in the assisted sales programme.

In connection with the merger, Agricore United also replaced existing credit facilities with three new credit facilities totalling $617.7 million on November 20, 2001, obtained from three Canadian chartered banks.

Davies Ward Phillips & Vineberg LLP acted as counsel to Agricore United, with a team comprised of Vincent Mercier, Patrick Moyer and Brian Calalang. Fasken Martineau DuMoulin LLP acted as counsel to the underwriters, with a team comprised of Joel Binder (securities) and Sean Morley and Michael Pasternack (corporate).