Dakota Plains

On February 28, 2017, Dakota Plains Holdings, Inc. (“Dakota Plains” or the “Company”) was acquired by BioUrja Trading, LLC (“BioUrja”) pursuant to §363 of the U.S. Bankruptcy Code.

Canaccord Genuity was hired on June 10, 2016 to explore sale and recapitalization alternatives for Dakota Plains.  The Company faced declining revenues triggered by the prolonged decline in crude oil prices as well as new pipeline infrastructure in the region. These adverse market conditions, coupled with the high operating costs at the Company’s transloading facility, rendered Dakota Plains unable to service its debt obligations.

Canaccord Genuity ran a comprehensive marketing process, resulting in the submission of five viable purchase offers. BioUrja emerged as the stalking horse bidder after multiple parties improved their initial bid terms.  On December 20, 2016, Dakota Plains filed for chapter 11 relief in the U.S. Bankruptcy Court for the District of Minnesota.  Based on Canaccord Genuity's testimony in support of the Company's expedited sale procedures, the Bankruptcy Court approved a 30 day marketing process. On January 27, 2017, following a competitive auction involving 43 rounds of bidding, the Court approved the sale of substantially all of the Company’s assets to BioUrja.  The final purchase price represented a 27% increase over BioUrja’s stalking horse bid.

Dakota Plains, headquartered in Wayzata Minnesota, is an integrated midstream energy company with services that include outbound crude oil storage, logistics, and rail transportation and inbound frac sand logistics.  Founded in 2008, the Company owns and operates a 200-acre rail terminal in the heart of the Bakken and Three Forks plays of the Williston Basin in North Dakota.  The terminal is located at the terminus of the Canadian Pacific line and has strategic proximity to the only Missouri River Bridge crossing for nearly 80 miles.