AgriFORCE Growing Systems Announces Binding LOI to Acquire a Leading European Agriculture/Horticulture and AgTech Consulting Firm, with Global Operations and 2020 Annual Revenues of US$26 million and EBITDA of US$3 million (IFRS Based)
October 27 2021 - 8:47AM
InvestorsHub NewsWire
AgriFORCE Growing Systems
Announces Binding LOI to Acquire a Leading European
Agriculture/Horticulture and AgTech Consulting Firm, with Global
Operations and 2020 Annual Revenues of US$26 million and EBITDA of
US$3 million (IFRS Based)
VANCOUVER,
B.C., Canada – October 27
2021 -- InvestorsHub NewsWire -- AgriFORCE Growing
Systems Ltd. ("the
Company") (NASDAQ: AGRI; AGRIW), an IP-focused
AgTech company dedicated to advancing sustainable cultivation and
crop processing across multiple platforms, has entered into a
binding letter of intent to acquire a leading AgTech European
consultancy focused on driving agricultural optimization,
innovation, solutions and operational expertise in the agriculture
and horticulture and Controlled Environment Agriculture (CEA)
sectors.
With
global operations and over 200 employees, this AgTech consultancy
achieved 2020 annual consulting audited revenues of over US$26
million and EBITDA of US$3 million (IFRS based), and it expects to
end the year 2021 with revenues of US$28 million (as estimated by
the target's management and subject to due diligence)
(1).
The
binding LOI is subject to completion of standard due diligence and
entry into a definitive purchase agreement within 45 days, which
shall include commercially standard terms and conditions,
including, but not limited to, representations and warranties,
covenants, events of default and conditions to closing.
The
purchase price by AgriFORCE is estimated to be in the range of
US$29 million (1)
with a
mix of cash and stock, with all stock issued in private placement
transactions exempt from registration under Section 4(a)(2) of the
Securities Act of 1933.
(1)
Based
on FX Rate Euro to US$ 2020 1.141357 and 2021 Euro to US$
1.192735
Transaction
Highlights
The AgriFORCE acquisition of this leading European AgTech
consultancy is expected to provide the following strategic
benefits:
-
AgriFORCE plans to leverage the consultancy's decades of
experience, established customer base and deep industry
relationships to accelerate deployment of its proprietary AgriFORCE
Grow House and related IP, including facility and lighting design,
automation and artificial intelligence, fertigation and nutrients,
as well as micropropagation and genetics.
-
The consultancy
has generated strong historical financial performance and
consistent growth across Europe and
internationally.
AgriFORCE
plans to build on this growth through expansion of these consulting
operations and the establishment of a research and development
center in North America, higher penetration of its Asian markets,
as well as expanding AgriFORCE's operations in Europe,
-
This acquisition
is intended to place the combined operations at the forefront of
knowledge and IP development and research, which AgriFORCE plans to
augment with increased revenue from technical solution platforms
in the key CEA verticals.
Ingo
Mueller, CEO of AgriFORCE Growing Systems, commented: "This
acquisition is an alliance of our complementary expertise and
shared values. Both AgriFORCE and this leading European AgTech
consultancy are dedicated to making positive change in the lives of
farmers and consumers. This is an unprecedented opportunity for
exceptional innovation and through our synergies, expanded growth
in both North America and Europe for both organizations." He added:
"We look forward to a robust collaboration around IP development
and implementation that will support farmers all around the world
in improving all aspects of agriculture – from seed to
table."
Troy
McClellan, President of AgriFORCE Solutions, added: "This is a key
step for AgriFORCE
to drive a strategic integration approach of crops,
operations, facilities, systems and environment in the development
of IP that improves controlled-environment agriculture (CEA), and
field agriculture, including plant yields, nutrition, taste and
pureness of quality. Our goal is to address some of the biggest
challenges and legacy issues in these key critical sectors
and in
the continual pursuit of clean, green, better crops and plant-based
products and ingredients."
About AgriFORCE
Dedicated to providing more sustainable and better quality
food, plant-based products and ingredients, pharmaceuticals and
nutraceuticals, AgriFORCE Growing
Systems Ltd.
(NASDAQ: AGRI; AGRIW) is an
AgTech company focused on developing and acquiring innovative
agriculture IP that changes the way cultivation and crop processing
are done. The Company's vision is to be a leader in delivering
plant-based foods and products through advanced and sustainable
AgTech solution platforms that make positive change in the world –
from seed to table. The AgriFORCE foundational IP – called the
AgriFORCE Grow House – includes a proprietary facility design and
automated growing system for high-value crops focused on improving
the way that controlled-environment agriculture (CEA) is done. The
AgriFORCE Grow House was designed to produce in virtually any
environmental condition and to optimize crop yields to as near
their full genetic potential possible, while using substantially
fewer natural resources and eliminating the need for the use of
pesticides and/or irradiation. The AgriFORCE goal: Clean. Green.
Better. Additional information about AgriFORCE is available
at: www.agriforcegs.com.
This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995. Statements other than statements of
historical facts included in this press release may constitute
forward-looking statements and are not guarantees of future
performance, condition or results and involve a number of risks and
uncertainties. Actual results may differ materially from those in
the forward-looking statements as a result of a number of factors,
including those described from time to time in our filings with the
Securities and Exchange Commission and elsewhere. The Company
undertakes no duty to update any forward-looking statement made
herein. All forward-looking statements speak only as of the date of
this press release.
Company
Contact:
Ian
Pedersen
Tel:
(604) 757-0952
Email:
ipedersen@agriforcegs.com
Investor
Relations:
Crescendo
Communications, LLC
David
Waldman/Natalya Rudman
Tel:
(212) 671-1021
Email:
AGRI@crescendo-ir.com
Media
Relations:
AHA
Creative Strategies Inc.
Ruth
Atherley
Tel:
(604) 846-8461
Email:
ruth@ahacreative.com
AgriFORCE Growing Systems (NASDAQ:AGRI)
Historical Stock Chart
From Aug 2024 to Sep 2024
AgriFORCE Growing Systems (NASDAQ:AGRI)
Historical Stock Chart
From Sep 2023 to Sep 2024