Murray River Organics Group Limited (MRG) provided earnings guidance for the fiscal year 2017. The fiscal year 2017 proforma revenue is expected to be down by $10 million, with approximately half of this reduction being attributed to the previously communicated 5-6 week delay in harvest season caused by an unusually cool and wet spring, coupled with more recent wet weather. The other half of the reduction is attributable to slower than anticipated uptake in sales following delays to the refurbishment of the company's Sunraysia processing facility, during which dried vine fruit could not be processed, as well as a lower contribution from Cluster sales following the previously communicated write-down of some Cluster inventory. These matters, in conjunction with the previously advised $1.8 million inventory write-down to some of the Cluster inventory, are all absorbed by and managed within the company's existing cash and working capital facilities, and results in the company now expecting to generate fiscal year 2017 pro forma EBITDA in the range between $12.5-13.5 million in fiscal year 2017 and pro forma fiscal year 2017 NPAT in the range between $4.2-4.9 million (excludes any contribution from the new acquisition).

Consistent with MRG's growth strategy, the company announced that it has agreed to acquire an additional and significant property of 7,764 acres adjacent to MRG's Colignan vineyard in Sunraysia. The acquired property plays favourably to MRG's core agronomy strength and provides an immediately earnings accretive large scale growth option for future development of new vertically integrated healthy and better-for-you food products. Competition for large-scale high-quality-soil free-hold farmland in Australia is increasing significantly. Acreage with soil suitable for numerous crops, such as tree nuts, citrus, vines, grains, ancient grains and high protein beans and legumes, that is favourably located, with infrastructure and irrigation in place, is in high demand. MRG will pay $7.5 million cash consideration to acquire 7,764 acres of farmland in Sunraysia, adjacent to MRG's Colignan vineyard. Details of the acreage of the large and flexible future growth option acquired include: 157 acres planted to citrus where the land is drip-irrigated. Plantings are still maturing with approximately 60% currently mature and full maturity will be reached by 2021. 177 acres planted to wine. Land is drip-irrigated. 5,980 acres bare. Arable land highly suited, amongst others, for development to tree nuts, citrus, vines and or growing of grains, ancient grains and high protein beans and legumes. 1,450 acres bare. Non-arable land where value creation opportunities will be explored. The acquisition is earnings accretive in year one and will be funded via existing banking facilities. Further development of this new acreage is not an immediate priority to the Company, as the acquisition, on an as-is basis, is earnings accretive. Any future development will be subject to disciplined project and funding assessment to deliver shareholder value.