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03.09.2013 14:30:00

Input Capital Corp. Expands Streaming Contracts

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REGINA, Sept. 3, 2013 /CNW/ - Input Capital Corp. ("Input" or the "Company") (TSX Venture Exchange: INP) is pleased to announce that it has expanded two existing canola streaming contracts with existing farm partners.

  • In exchange for an upfront payment of $285,000, the delivery schedule of an existing canola streaming contract in Saskatchewan (Contract SK-5) was expanded by adding 800 new tonnes to be delivered during the current fiscal year at a cash cost of $100 per tonne on delivery.
  • In exchange for an upfront payment of $43,750, the delivery schedule of an existing canola streaming contract in Saskatchewan (Contract SK-9) was expanded by adding 125 new tonnes to be delivered during the current fiscal year at a cash cost of $100 per tonne on delivery.

These contract expansions bring Input's total attributable production of canola to 17,152 base tonnes for the current fiscal year, at an average cash cost of $79.05 per tonne.1

Input also has the right to purchase bonus tonnes from farmers at the same fixed price as base tonnes. Eligible bonus tonnes are calculated as a percentage of the actual crop yield in excess of a pre-determined yield threshold on each farm. This means that larger crop yields increase the number of tonnes attributable to Input for that crop year.

Input President & CEO Doug Emsley commented, "Input is a financial partner to our farm clients/partners. We are pleased to be able to provide working capital to our partners to facilitate good farming and business decisions. Expanding these contracts provides timely working capital to our farm partners and allows Input to increase its share of this year's production."

ABOUT INPUT CAPITAL

Input is an agriculture commodity streaming company with a focus on canola, the largest and most profitable crop in Canadian agriculture. Input provides upfront financing to canola farmers in western Canada who are looking for capital and in return receives a canola streaming agreement. Pursuant to the streaming agreement, Input purchases a fixed portion of the canola produced, at a fixed price, for the duration of the term of the contract. Input is a non-operating farming company with a portfolio of ten canola streams, all of which produce canola and revenue for Input in the year the agreement is signed. Input plans to grow and diversify its low cost canola production profile through the acquisition of additional canola streams across the western Canada.

Input is focused on farmers with quality production profiles, excellent upside yield potential, and strong management teams. Input has completed canola purchase agreements in Northern Alberta, Western Saskatchewan, and throughout East Central Saskatchewan.

FACTS ABOUT CANOLA

Not many people know much about canola, but the Canadian canola industry is larger than the more well-known Canadian potash industry.

  • Canola is the largest and most profitable crop in Canadian agriculture, generating more than 25% of all farm receipts.
  • Canadian-grown canola contributes $15.4 billion to the Canadian economy each year, including more than 228,000 Canadian jobs and $8.2 billion in wages.
  • In 2012, canola was ranked as the 7th most important Canadian export by value, compared to potash in 10th position.
  • In 2012, canola was Canada's top export to China, representing a full 16% of all Canadian exports to China.
  • Canada is the dominant canola exporter in the world, with a 72% global export market share in 2011/12.

For more information visit: www.inputcapital.com

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction.

ANY SECURITIES REFERRED TO HEREIN WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933 (THE "1933 ACT") AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO A U.S. PERSON IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE 1933 ACT.

Forward Looking Statements
This release includes forward-looking statements regarding Input and its business. Such statements are based on the current expectations and views of future events of Input's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Input, including risks regarding the agricultural industry, economic factors and the equity markets generally and many other factors beyond the control of Input. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Input undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

The TSXV has not reviewed and does not accept responsibility for the adequacy or accuracy of this Press Release.

Note 1: Input Capital has included certain performance measures in this press release that do not have any standardized meaning prescribed by International Financial Reporting Standards (IFRS) including average cash cost per tonne of canola and cash operating margin. Average cash cost per tonne of canola is calculated by dividing the total cost of sales, less amortization, by the tonnes sold. In the farming industry, this is a common performance measure but does not have any standardized meaning. The Company believes that, in addition to conventional measures prepared in accordance with IFRS, certain investors use this information to evaluate the Company's performance and ability to generate cash flow. Cash operating margin is calculated by subtracting the average cash cost per tonne of canola from the average realized selling price per tonne of canola. The Company presents cash operating margin as it believes that certain investors use this information to evaluate the Company's performance in comparison to other companies in the agriculture and streaming industries who present results on a similar basis. The presentation of these non-IFRS measures is intended to provide additional information and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with IFRS. Other companies may calculate these non-IFRS measures differently.

SOURCE Input Capital Corp.

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