Archer Daniels Midland Company, Decatur, Ill., announces that its wholly owned subsidiary, ADM Agri-Industries Company, has agreed to purchase 1,520,000 limited voting common shares of Agricore United at a price of $9.63 per share on a private placement basis.Archer Daniels Midland Company, Decatur, Ill., announces that its wholly owned subsidiary, ADM Agri-Industries Company, has agreed to purchase 1,520,000 limited voting common shares of Agricore United at a price of $9.63 per share on a private placement Private Placement Raising of capital via private rather than public placement. The result is the sale of securities to a relatively small number of investors.Notes: Private placements do not have to be registered with organizations such as the SEC because no public offering is involved. See also: Capital, IPO, Placement, Restricted Stock, SEC basis. Agricore United will use the proceeds from the private placement to partially finance its acquisition for cancellation of 1,527,694 limited voting common shares under its previously announced share consolidation program. The purchase of the private placement shares will be made pursuant to the exercise of ADM's existing pre-emptive rights Pre-Emptive Right The right of a company's existing common shareholders to have the first chance to purchase shares in a company's future stock issue.Notes: Also known as "pre-emption rights". See also: Common Stock, No-Par-Value Stock, Stock .
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