Hemisphere GPS Inc. is turning 100% agriculture. The company has signed and closed a definitive agreement to sell all business assets associated with its non-agricultural operations to the Canadian subsidiary of Beijing UniStrong Science & Technology Co. for nearly $15 million. These non-agricultural operations include the company’s Precision Products portfolio, along with related infrastructure.
A change this big deserves a new name, say company officials. Hemisphere plans on moving forward as AgJunction, a move that will be subject to shareholder agreement at a May, 2013, meeting.
"The decision to divest our non-agriculture operations reflects our focus on the core platforms necessary to extend our leadership in precision agriculture," says president and CEO Rick Heiniger. "The result is a streamlined business that can more effectively capitalize on the expanding market opportunities in agriculture."
The name and brand identity of Hemisphere would then be passed on to UniStrong, which intends to name the acquired operations "Hemisphere GNSS Inc."
Because UniStrong was already a reseller for Hemisphere, Heiniger says the two companies plan to continue collaborating after the transaction. Elements of this business relationship will include supply chain management, customer support, non-competition and perpetual technology cross-licensing, he says.
"Already having an established relationship with UniStrong as one of our resellers made our alliance a win-win for both parties," Heiniger says. "I am very pleased to be working together in this close technology-sharing relationship."
Other than the name change and a plan to update the company’s listing on the Toronto Stock Exchange from "HEM" to "AJX", the company is planning no disruptions to its existing agriculture business, Heiniger adds. The ticker change is also subject to shareholder approval and will be finalized in May. AgJunction will operate out of Hiawatha, Kan.