logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


IPO Report: Taggares Agriculture (TAG)

By  +Follow June 26, 2014 3:32AM
Share:
Tickers Mentioned:

Taggares Agriculture IPO, IPO, IPO report, Taggares Agriculture IPO report, small-cap stocks, stocks to buy now, IPOs today Taggares Agriculture ($TAG) was formed in January 2014 to leverage the well-established Taggares family name and farming expertise to acquire, re-develop and operate profitable farmland in the Pacific Northwest. It is headquartered in Kennewick, WA.

Fourteen other companies are scheduled for the week of June 23, 2014. The complete IPO calendar is available at IPOpremium.

The manager and co-managers are Janney Montgomery Scott/ ROTH Capital Partners. The joint manager is Feltl and Company.

TAG scheduled a $46 million IPO with a market capitalization of $54 million at a price range midpoint of $6.50 for the week of June 23, 2014 on the Nasdaq. SEC filings

Taggares Agriculture IPO Report

Overview

TAG was formed in January 2014 to leverage the well-established Taggares family name and farming expertise to acquire, re-develop and operate profitable farmland in the Pacific Northwest (the region encompassing Washington, Oregon and Idaho).

TAG will be selling 86% of the company, with the proceeds going  to acquire apple and grape farmland.

Valuation

Glossary

Valuation Ratios

Mrkt Cap (mm)

Price /Sls

Price /Erngs

Price /BkVlue

Price /TanBV

% offered in IPO

Using fiscal 2013 because seasonal

     

Taggares Agriculture (TAG)

$54

7.0

6.7

1.2

1.3

86%

             

Conclusion

Based on the year ended November 2013 the P/E is  6.7, but it's a stable farmland business where growth can only come from acquisitions.

The rating is neutral.

Business

TAG was formed in January 2014 to leverage the well-established Taggares family name and farming expertise to acquire, re-develop and operate profitable farmland in the Pacific Northwest (the region encompassing Washington, Oregon and Idaho).

Existing Operations 

TAG was founded in January 2014 and currently has no revenue-generating business operations.

However, TAG has already taken numerous steps to position Taggares Agriculture Corp. for future growth, including negotiating the contractual right to acquire the real property, certain personal property, business operations, water and other rights related to the real property (the “Business and Assets”) of Snake River Vineyards (“SRV”), an apple and grape farm located on the Snake River in Burbank, Wash. that encompasses a total of approximately 3,200 acres.

In addition, TAG has entered into new strategic partnerships, including a five-year contract with Tree Top, Inc. with market-rate pricing terms; negotiated a non-binding letter of intent to enter into a three-year packing agreement with Valicoff that includes a per-bin handling rebate and otherwise market-rate pricing terms; developed detailed farm acquisition and re-development strategies as described in the SEC filing; and established a high-quality management team and board of directors with significant experience and expertise in real estate, investing and agriculture.

TAG’s primary focus is on acquiring farmland with the necessary characteristics to grow differentiated permanent crops that are profitable to its business such as tree fruit (e.g. apples), stone fruit (e.g. cherries, nectarines and pears) and grapes (e.g. concord and wine grapes).

These characteristics include an established permanent crop, secure water rights, re-development potential, large contiguous area, existing operations, and consistent yields.

In addition, capitalizing on the extensive experience of its management, consultants and advisors, TAG intends to use value-enhancing farming techniques to increase the yield of its crops, such as advanced pruning and thinning techniques, frost prevention such as ponds and wind machines, and other infrastructure improvements.

Further, TAG plans to establish partnerships to improve its economies of scale, such as those with Valicoff, the apple packing shed that will pack, store, distribute, market and sell its apples.

Acquisition strategy

TAG’s acquisition strategy will commence immediately after this offering, but will continue over the next two to five years and, will require it to obtain additional financing, accurately identify attractive property, compete effectively with other potential buyers of farmland and successfully integrate and operate these new properties.

Although TAG anticipates launching its re-development strategy upon completion of its acquisition of the Business and Assets of SRV, TAG will not realize certain benefits of these efforts for up to two to five years, if at all, and such improvements may require TAG to incur debt in the future.

Dividend Policy

No dividends are planned.

Competition

Competition in the grape and apple industries in Washington and internationally is intense.

SRV faces direct competition by other grape and apple companies, including small family-owned businesses, as well as subsidiaries or other affiliates of large companies, some of which have substantially greater resources than TAG does.

SRV’s principal competitors in the Pacific Northwest concord grape industry are The J.M. Smucker Company (SJM) and affiliated entities and Milne Fruit Products, Inc. and affiliated entities.

The Washington apple industry is comprised of hundreds of small, independently and family-owned farms, none of which have significant market share to constitute any particular competitive advantage.

5% stockholders pre-IPO

T3 Ag Investments, LLC            54.2%

Peter J. Taggares IV Irrevocable Trust    25.8%  

Peter John Taggares III & Sandra Kay Taggares 15.5%

Use of proceeds

TAG expects to net $42 million from its IPO. Proceeds are allocated as follows:

Acquisition of Business and Assets of SRV J.V. (See “Related Party Transactions and Structure of the Company and Related Parties” beginning on page 90) less deposit of $133,000 already paid                                                                                                      $29,167,000

Acquisition of land and related assets from Bubby T, LLC                      $700,000          

Estimated payment for 2014 in-progress crop costs                              $864,000                       

Payment for accrued liabilities incurred for offering costs                                  $249,000                       

Future acquisitions of agricultural properties consistent with its business strategy            $7,362,000

Re-development of portions of its land for new apple varieties, including the purchase of new apple plants                      $1,000,000 

Repayment of debt owing to a related party                                          $550,000                                 

Replacement of equipment, building new facilities and upgrading technology                         $1,000,000   

General corporate and working capital purposes                                    $1,000,000

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for TAG
Penny Stockington
23 May 15 13:31:36
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVU6RRw $TAG $TLNUF $CYIG
Stockaholics
23 May 15 13:29:56
Our Penny Stock Pick On $THCZ Is Up 570.77% For Platinum Members! Big Update: http://t.co/dXhKtfHUdQ $TAG $TLNUF $CYIG
StockenheimerSchmidt
23 May 15 13:19:55
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $TAG $TLNUF $CYIG
Stock Dawgzz
23 May 15 11:49:41
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $TAG $TLNUF $CYIG
Stock Rocket
23 May 15 11:18:28
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $TAG $TLNUF $CYIG
Penny Stockington
23 May 15 10:18:03
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVUosJ4 $TAG $TLNUF $CYIG
StockenheimerSchmidt
23 May 15 10:06:04
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $TAG $TLNUF $CYIG
Stock Dawgzz
23 May 15 08:21:58
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $TAG $TLNUF $CYIG
Stock Rocket
23 May 15 07:57:26
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbtrUQ $TAG $TLNUF $CYIG
Penny Stockington
23 May 15 07:20:51
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVUosJ4 $TAG $TLNUF $CYIG
Penny Stockington
22 May 15 23:15:12
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVU6RRw $TAG $TLNUF $CYIG
Stock Dawgzz
22 May 15 18:37:33
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $TAG $TLNUF $CYIG
StockenheimerSchmidt
22 May 15 18:25:40
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $TAG $TLNUF $CYIG
Stock Rocket
22 May 15 18:20:31
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $TAG $TLNUF $CYIG
Stockaholics
22 May 15 18:18:41
Our Penny Stock Pick On $THCZ Is Up 570.77% For Platinum Members! Big Update: http://t.co/dXhKtfHUdQ $TAG $TLNUF $CYIG
Penny Stockington
22 May 15 17:28:21
Our Penny Stock Alerts Gained Over 3300% For Subscribers In 7 Months! See Our New Picks: http://t.co/nLJyVUosJ4 $TAG $TLNUF $CYIG
WorldCoinIndex
22 May 15 16:45:16
Crypto-currency winners http://t.co/s0Ob1REGYp $SRC $TAG $ROOT $NIRO $RIC http://t.co/eBeopO7a0M
Haka
22 May 15 11:45:38
@chavatta @renegaum olha ai o teste. #hashtag $tag
StockenheimerSchmidt
22 May 15 11:26:25
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3Eq6QC $TAG $TLNUF $CYIG
WorldCoinIndex
22 May 15 10:45:11
Crypto-currency winners http://t.co/s0Ob1REGYp $SRC $TAG $ROOT $NTRN $RIC http://t.co/6bMeCz5Mpt
Stock Rocket
22 May 15 10:44:05
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbtrUQ $TAG $TLNUF $CYIG
Penny Stockington
22 May 15 10:44:02
Our Penny Stock Alerts Gained Over 3100% In 6 months! Subscribe For Our Upcoming Picks: http://t.co/fuHL8497KQ $TAG $TLNUF $CYIG
Stock Dawgzz
22 May 15 10:39:02
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $TAG $TLNUF $CYIG
StockenheimerSchmidt
22 May 15 00:47:42
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3Eq6QC $TAG $TLNUF $CYIG
Stockaholics
22 May 15 00:40:31
$DRNK Gained 600% In 11 Trading Days! Huge Update On This Monster: http://t.co/DsO93qtlQR $TAG $TLNUF $CYIG
Penny Stockington
21 May 15 21:31:43
Our Penny Stock Alerts Gained Over 3100% In 6 months! Subscribe For Our Upcoming Picks: http://t.co/fuHL8497KQ $TAG $TLNUF $CYIG
StockenheimerSchmidt
21 May 15 21:29:31
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3E8vs2 $TAG $TLNUF $CYIG
Stock Dawgzz
21 May 15 21:29:21
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfQa85k $TAG $TLNUF $CYIG
Stock Rocket
21 May 15 21:26:38
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $TAG $TLNUF $CYIG
Stockaholics
21 May 15 21:23:51
$DRNK Gained 600% In 11 Trading Days! Huge Update On This Monster: http://t.co/DsO93qtlQR $TAG $TLNUF $CYIG
WorldCoinIndex
21 May 15 10:45:32
Crypto-currency winners http://t.co/s0Ob1RWhPX $DTC $DCC $VTC $VIRAL $TAG http://t.co/rDqhkgASp9
Penny Stock Secret
21 May 15 09:07:37
$71,000 in ONE TRADE!! By Follwing Their Signals More Info Here http://t.co/NovWYe2RAx .. $TAG $TLNUF $CYIG
Stock Dawgzz
20 May 15 15:40:02
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfPSxdM $TAG $TLNUF $CYIG
StockenheimerSchmidt
20 May 15 15:12:27
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3Eq6QC $TAG $TLNUF $CYIG
Penny Stockington
20 May 15 15:11:23
Our Penny Stock Alerts Gained Over 3100% In 6 months! Subscribe For Our Upcoming Picks: http://t.co/fuHL83Rwmg $TAG $TLNUF $CYIG
Stockaholics
20 May 15 13:24:48
$DRNK Has Gained 600% In The Past 11 Trading Days! Huge Update On This Monster: http://t.co/DsO93qtlQR $TAG $TLNUF $CYIG
Stock Rocket
20 May 15 13:18:02
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $TAG $TLNUF $CYIG
Zake
20 May 15 12:10:21
@Donnerbart Äh Sonntag ist für mich nur ne Variable $TAG
Stock Dawgzz
20 May 15 09:27:02
$DRNK Has Become One Of The Fastest Moving Penny Stocks In The Past 2 weeks! Big News: http://t.co/vFCVfPSxdM $TAG $TLNUF $CYIG
Penny Stockington
20 May 15 09:24:21
Our Penny Stock Alerts Gained Over 3100% In 6 months! Subscribe For Our Upcoming Picks: http://t.co/fuHL83Rwmg $TAG $TLNUF $CYIG
Penny Stock Secret
20 May 15 09:12:18
Yesterday We Made $94,000 In Just One Trade More Info Here http://t.co/NovWYe2RAx .. $TAG $TLNUF $CYIG
StockenheimerSchmidt
20 May 15 08:09:33
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3Eq6QC $TAG $TLNUF $CYIG
Stockaholics
20 May 15 07:24:39
$DRNK Has Gained 600% In The Past 11 Trading Days! Huge Update On This Monster: http://t.co/DsO93qKXfr $TAG $TLNUF $CYIG
Stock Rocket
20 May 15 07:19:47
Our Stock Alerts Gained Over 1300% In Less Than 3 Months! See Our New Picks: http://t.co/keLIhbbQwg $TAG $TLNUF $CYIG
Chris Neugebauer
20 May 15 00:43:31
@crk5 the $TAG is for stock tickers, like $AAPL or $MSFT.
¢hríȿ
20 May 15 00:42:01
I wonder if the #tag and the $tag work in the same way of if the $tag has added benefits? #twatter
Altcoin Trader
19 May 15 23:13:19
RT @crypto_chatter: 10 Most Mentioned Coins - last 6 hours: $STR 18 $LTCD 13 $SWIFT 12 $URO 8 $ORB 5 $CAP 4 $Points 4 $WDC 4 $TAG 2 $BET 2 …
CryptoChatter
19 May 15 23:00:05
10 Most Mentioned Coins - last 6 hours: $STR 18 $LTCD 13 $SWIFT 12 $URO 8 $ORB 5 $CAP 4 $Points 4 $WDC 4 $TAG 2 $BET 2 #altcoin #btc
StockenheimerSchmidt
19 May 15 22:11:15
Our Penny Stock Pick On $TLFX Gained 70% in the past week and a half! Big Things coming: http://t.co/uooe3Eq6QC $TAG $TLNUF $CYIG
Stockaholics
19 May 15 21:54:41
$DRNK Has Gained 600% In The Past 11 Trading Days! Huge Update On This Monster: http://t.co/DsO93qKXfr $TAG $TLNUF $CYIG
				
				
By  +Follow June 26, 2014 3:32AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN