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AgraMarke Quality Grains, Inc.


Trading Status: Inactive
Web Site: www.lifeline-foods.com
SEC Filing(s): No
View Operations Manual
View Support Documents
AgraMarke Quality Grains, Inc. Logo

In the Spring of 1996, twenty progressive producers, land-owners and agriculture-related businessmen in the St. Joseph area developed a local cooperative with primary objectives of expanding agricultural markets and providing a viable business that would stabilize the agricultural economy of the community. The concept was to pool the group's knowledge, production and resources to grow identity-preserved grains, focusing on research and the newest agricultural technologies. The company was called "AgraMarke" which stands for Agricultural Research, Administration, Marketing and Education.

In January of 2000, a facility located in St. Joseph, Missouri became available for purchase. This sale included the building on a 38-acre tract of land, certain physical assets of the plant and selected processing and grain handling equipment. This location was a natural fit for the members of AgraMarke. The consolidated facility offered many advantages for the company including efficiency, safety and flexibility of the products produced. The company would be able to integrate the talents of AgraMarke's producers with a processing facility capable of keeping grains segregated and thus targeting specific food uses. The relationship between producers and processing would enhance the traceability, efficiency and quality of food products.

AgraMarke facilitated the creation of two new entities called Lifeline Foods, LLC (Lifeline) and AgraMarke Quality Grains, Inc. (AQG), to pursue the purchase of the facility. In June 2001, Lifeline purchased the facility and began renovation and operations. At the time of purchase, AgraMarke held a 10% ownership interest and AQG held a 90% ownership interest in Lifeline. The facility has easy access to Interstate 29, Interstate 229 and U.S. Hwy 36 and has rail service via the Burlington Northern Santa Fe and Union Pacific.

By 2004 Lifeline had become a vertically integrated company with a commitment to quality, reliability and trust. As a young company in a mature industry, Lifeline emerged with a reputation as a relationship-oriented solutions provider with a focus on innovation. By addressing the needs of their customers, the company grew to become a strong competitor in the manufacture of corn-based food ingredients.

With a never ending quest for improvement and efficiency, Lifeline's farmer owners decided to team with ICM, Inc in February of 2006 to capture immediate competency in both food and energy. ICM, Inc. is a world leader in ethanol facility design and engineering. ICM's expertise, industry knowledge and innovative capabilities have supported Lifeline's ability to take advantage of the synergies between food and energy production. The efficiencies are shared with customers in the form of higher quality food products due to Lifeline's enhanced ability to select only the top quality portions of the kernel for ingredients at competitive prices.

Today, AQG's membership has grown to over 600 producer owners. The members of AQG produce and deliver up to 100% of the corn processed at Lifeline. Lifeline has become the first plant in the country to utilize a proprietary technology developed to produce both food and fuel. With this technology, Lifeline is now positioned to strengthen their commitment to their customers in the food industry and additionally provide a solution in supplying both food and fuel.


Important Notices to Investors
  • Dividends will be paid to the unitholder of record when declared by the AQG Board of Directors in its discretion. The amount and date of distribution are determined by the Board.
  • Units purchased and/or sold may carry retained earnings that are eligible for payout at the discretion of the Board. All future rights of distribution based on patronage, all unit retains, and all deferred grain payments on units sold will transfer to the new owner of record.
  • Non-Members will be required to pay a non-refundable, one-time Membership Fee to become a member of AQG. The Membership Fee is currently $100.00 per membership.
  • Only "producers of agricultural products" are eligible to become members of AQG and to own units. A condition of membership in AQG is entry into a Uniform Marketing and Delivery Agreement under which the member/unitholder is obligated to meet annual corn delivery obligations to AQG, either through direct delivery or through procurement agreements with parties that will procure and delivery corn on the member's behalf.
  • Related Party Transfers will be handled on an individual basis by the AQG Office.
  • The Seller will be required to pay Variable Investment Advisors, Inc. a fee of three percent (3%) of the gross sales price with a minimum fee of one hundred seventy-five ($175.00) dollars to be paid out of the Sellers proceeds at the time of closing.

Participation Unit Transfer Support Documents

»  Application for Membership
»  Uniform Marketing & Delivery Agreement (New Members)
»  Uniform Marketing & Delivery Agreement Amended Signature Page (Current Members)
»  Participation Unit and Liquidation Rights Transfer and Hold Harmless Agreement
»  Affidavit of Lost Certificate


Forward Looking Statements

This description contains "forward-looking statements," which are subject to a number of risks and uncertainties, many of which are beyond our control. Forward-looking statements are typically identified by the words "believe," "expect," "anticipate," "intend," "estimate" and similar expressions. Actual results could differ materially from those contemplated by these forward-looking statements as a result of many factors, including the economic conditions generally and in our principal markets, the availability and prices of commodities, food safety, competitive practices and consolidation in the food and energy production and processing industries, actions of domestic or foreign governments, hedging risk, changes in interest rates and foreign currency exchange rates, consumer demand and preferences, the cost of compliance with environmental and health laws, loss of key customers or suppliers, loss of key employees, labor relations, and consolidation among our customers.

In light of these risks and uncertainties, there can be no assurance that the results and events contemplated by the forward-looking information contained in this description will in fact transpire. Readers are cautioned not to place undue reliance on these forward-looking statements. We do not undertake any obligation to update or revise any forward-looking statements. All subsequent written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by these factors.

 
 
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