Feb. 15, Langley, B.C., (CNW) - Bevo Farms Ltd., a subsidiary of Bevo Agro Inc., has negotiated a new credit facility totalling $24 million with Farm Credit Canada (FCC).  This facility will replace existing facilities with BMO Bank of Montreal (BMO) in the aggregate principal sum of $17 million representing all of the current BMO facilities with the exception of the $2 million operating line referred to in this release. The FCC facility will also provide funds to pay out the $5-million Banyan Capital Partners (“Banyan”) convertible debenture that matured in September 2007.

The FCC facility consists of a $2 million loan to be used for general agricultural purposes, an $11 million term loan amortized over 20 years, and an $11 million term loan amortized over 15 years. All of the loans have a five-year term.  BMO Bank of Montreal will continue to provide a $2-million operating loan facility for day-to-day operations. The BMO facility will be secured in part by a $1-million cash deposit provided by Banyan, for which the Company will pay annual interest of 12 per cent.

Bevo Agro is North America’s leading supplier of propagated agricultural plants, growing and distributing vegetable, flower, berry and other plant seedlings to North America’s growers. Bevo propagates quality seedlings and plants primarily for wholesale vegetable greenhouse growers, field growers and nursery operators from its 34 acre production facility.  FCC is Canada’s largest provider of business and financial services to farms and agribusiness, operating out of 100 offices located primarily in rural Canada.

www.bevofarms.com