Organic Growing Systems, Inc. Announces Long-Term Feedstock Supply Agreement
Wed Sep 24, 8:39 AMALPHARETTA, Ga.--(BUSINESS WIRE)--Organic Growing Systems, Inc., a subsidiary of Advanced Growing Systems, Inc. (OTC BB: AGWS) announces the signing of a three year broiler litter feedstock supply agreement with its current litter supplier. This agreement will facilitate the increased supply necessary for full production at the Monticello MS factory for up to 200 tons per day. The contract locks in both a specific amount of supply and a price point per ton for the next three years.
Ninety percent of our finished goods are derived from raw broiler litter. Having this part of our supply chain under contractual control for both size and pricing makes growing sales that much easier stated Mark Nichols, President and CEO of Organic Growing Systems, Inc. Our supplier has been an informal partner from the first day of business and has met every challenge we have thrown at them. This agreement solidifies them as a formal partner and a key to our continued success.
Robin Borden, Chief Agronomist and Director of Technical Services for Organic Growing Systems stated We consider this agreement a win-win for both companies. We are provided with the raw materials in the quantities that we need at the time we need them and they are provided with an outlet for potentially hazardous fecal matter. Borden further commented, They grow a healthier bird in a cleaner environment when they keep the houses free of excess litter buildup.
The agreement will be price stable and will remain in effect until 8/31/2011. The agreement will automatically extend for an additional 24 months if neither party has provided written notice of cancellation 90 days prior to the end of the agreement.
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About AGWS:
Advanced Growing Systems, Inc. (AGSI or the Company), founded in 2006, is the parent company of Organic Growing Systems, Inc. (a scientifically advanced Organic fertilizer manufacturer) and Advanced Nurseries, Inc. (a wholesale group of Commercial Nurseries located in the Southeastern US). AGSI is dedicated to providing its shareholders significant value and is directly involved in the $48 Billion fertilizer market and the $66 Billion Green Industry. For more information, please visit www.AGSIncorporated.com.
FORWARD LOOKING STATEMENTS:
Statements about AGSI's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. AGSI's actual results could differ materially from expected results. AGSI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this objective; AGSI will appropriately inform the public.
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