4. Discontinued Operations

Tradin Organic

On December 30, 2020 (the "Closing Date"), the Company completed the divestiture of its organic ingredient sourcing and production business, Tradin Organic, by selling all of the Company's interests and rights in The Organic Corporation B.V. and Tradin Organics USA LLC to Amsterdam Commodities N.V. ("Acomo"), pursuant to a Master Purchase Agreement, dated November 25, 2020, among the Company, Acomo, and the other parties thereto (the "Transaction"). The global operations of Tradin Organic included its organic and non-GMO ingredient sourcing operations centered in Amsterdam, The Netherlands, and Scott's Valley, California, together with its consumer-packaged premium juice co-manufacturing business, and its cocoa, sunflower, sesame, and avocado ingredient processing facilities located in the Netherlands, Bulgaria, and Ethiopia. Together with the Company's former soy and corn business (see note 5), Tradin Organic comprised the Company's former Global Ingredients operating segment.

As of the Closing Date, the Company received cash consideration from the Transaction of $373.7 million (€305.1 million), net of cash acquired and debt assumed by Acomo. As described in note 23, Acomo has submitted a request for Summary Arbitral Proceedings regarding the allocation of the purchase price Acomo paid to acquire the shares of The Organic Corporation B.V. and the membership interests of Tradin Organics USA LLC in connection with the closing of the Transaction.

The Company realized a cash loss of $12.7 million on a foreign currency forward contract to economically hedge the exchange rate risks on the euro-denominated cash consideration between the date of the Master Purchase Agreement and the Closing Date. The Company recorded this loss in other expense from continuing operations for the year ended January 2, 2021. as the loss was not considered a direct operating item of the discontinued operations of Tradin Organic.

In connection with the Transaction, on December 31, 2020, the Company repaid in full approximately $72 million of indebtedness attributable to Tradin Organic as of the Closing Date. In addition, on December 31, 2020, the Company utilized $233.3 million of the cash consideration from the Transaction to redeem all of its outstanding 9.5% senior secured second lien notes due October 2022 (including accrued interest and premium paid on redemption of $9.8 million in total) and repaid approximately $60 million of other outstanding indebtedness.

As of the Closing Date, the Company recognized a pre-tax gain on sale of Tradin Organic of $111.8 million, which was recorded in discontinued operations.

The following table reconciles the major components of the results of discontinued operations to the amounts reported in the consolidated statements of operations for the years ended January 2, 2021 and December 28, 2019:

	January 2, 2021		December 28, 2019
	$		$
Revenues	503,036		468,426
Cost of goods sold	441,277		418,676
Selling, general and administrative expenses⁽¹⁾	26,953		27,737
Intangible asset amortization	1,451		1,859
Other expense (income), net	(782	)	591
Foreign exchange loss (gain)	3,142		(1,147	)
Interest expense⁽²⁾	2,409		1,912
Earnings before gain of sale	28,586		18,798
Pre-tax gain on sale	111,818		-
Earnings from discontinued operations before income taxes	140,404		18,798
Income tax expense	15,885		6,322
Earnings (loss) attributable to non-controlling interests	(301	)	154
Earnings from discontinued operations	124,820		12,322

(1) Selling, general and administrative expenses exclude management fees charged by SunOpta Corporate Services and include stock-based compensation expense attributed to employees of Tradin Organic.

(2) Interest expense reflects interest on debt directly attributed to Tradin Organic.