AGI Announces CEO Appointment

• CEO Appointment (May 7, 2026): Paul Brisebois transitioned from Interim to permanent President & CEO following a tenure since January 2026. The Board intends to appoint him to the Board of Directors post-shareholder meeting on June 4, 2026.
• Q1 2026 Financial Results (May 6, 2026): Revenue declined 2% YoY to $282 million; Adjusted EBITDA fell 19% YoY to $25 million. Net loss before taxes was $(43.6) million.
• Brazil Receivables: Approximately $105 million in long-term accounts receivable from Brazil released from escrow, with $55 million received and applied toward debt repayment. Remaining balance expected by May 2026.
• Restructuring Update: Annualized cost-savings target increased to at least $30 million (up from previous $20 million target). Non-recurring restructuring charges of $12 million incurred in Q1.
• Order Book: Total order book declined 19% YoY to $589 million, driven by cautious customer behavior in North America and international markets.
• Activism Context (April 2026): Plantro Ltd. nominated three individuals for the Board and called for a strategic review/sale process at the upcoming Annual General Meeting (AGM) on June 4, 2026.

• Operational Decline: The Q1 results confirm continued deterioration in core business metrics with EBITDA down 19% and order book down 19%. This indicates the restructuring has not yet halted revenue erosion or margin compression.
• Cash Flow Relief vs. Leverage: While $55 million from Brazil receivables improves liquidity, the proforma net debt leverage ratio remains elevated at 4.7x. The company is still reliant on asset monetization to service debt rather than organic cash flow generation.
• Governance Stability: The permanent CEO appointment mitigates immediate leadership uncertainty but does not resolve the underlying activist pressure from Plantro Ltd., which demands a sale process.
• Market Expectations: Given the withdrawn guidance in late 2025 and Q4 2025 EBITDA decline of 38%, the Q1 miss was largely anticipated by the market, limiting upside surprise potential.
• Net Impact: The operational weakness (revenue/EBITDA decline) outweighs the one-time cash relief from Brazil receivables. The CEO appointment is a procedural stabilization rather than a strategic pivot.

• Company: Ag Growth International Inc. (TSX: AFN).
• Flagship Projects: Global leader in grain infrastructure products including storage, handling, and portables. Key segments are Farm (permanent storage) and Commercial (large-scale projects).
• Development Status: Currently undergoing a major restructuring to simplify operations and reduce SG&A costs following significant margin compression in 2025.
• Strategic Focus: Shifting away from large-scale financed projects in Brazil to conserve cash, focusing on equipment sales instead.