News: A1 Investments & Resources inks agriculture deal with Sol Holdings Corporation

A1 Investments & Resources (ASX:AYI) has exchanged a letter of understanding with SOL Holdings Corporation (TYO:6636) to develop the SuperSorghum business by means of an exclusive distribution agreement in favour of A1 for Australia.

A1 intends to complete a series of documents that provide for a long term capital and business alliance with SOL.

Since SOL signed a memorandum of understanding with A1 in March 2014, SOL has made placements in A1 to a sum of $200,000.

In March, A1 entered a heads of agreement to acquire Singapore based Marvel Seeds, a worldwide distributor of Super Sorghum seeds from Japan. Marvel had an existing arrangement with Sol.

Super Sorghum is a fast growing and high yielding crop, extremely drought tolerant and easily convertible to bioethanol.

SOL has confirmed an offer of an exclusive distribution agreement for SuperSorghum in Australia by its subsidiary SOL Asia, to A1 for a term of 5 years for an exclusivity payment of $500,000.

A1 is in the process of sourcing funding to pay this fee.

SOL has also confirmed its commitment to assist A1 with arranging of the capital funding requirements of such ventures including new plant, stock yards and feed lots as required.

A1 has 6 months to finalise the funding, distribution agreement, and business alliance agreement.

These agreements with a large Japanese listed company could become a profitable partnership for A1.


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