AgriFORCE Stock Skyrockets after LOI to Acquire a Leading European Agriculture/Horticulture and AgTech Consulting Firm
Oct 27, 2021 By MarketDepth
AgriFORCE Growing Systems, Ltd. (NASDAQ: AGRI) stock jumped more than 100% after the agriculture-focused technology company has announced that it 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.
$28 Million Revenue Estimate
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$28 million (as estimated by the target’s management and subject to due diligence) (1).
“This acquisition is an alliance of our complementary expertise and shared values. Both AgriFORCE and this leading European AgTech consultancy are dedicated to making positive change in the lives of farmers and consumers. This is an unprecedented opportunity for exceptional innovation and through our synergies, expanded growth in both North America and Europe for both organizations. We look forward to a robust collaboration around IP development and implementation that will support farmers all around the world in improving all aspects of agriculture – from seed to table.”Ingo Mueller, CEO of AgriFORCE Growing Systems
The binding LOI is subject to completion of standard due diligence and entry into a definitive purchase agreement within 45 days, which shall include commercially standard terms and conditions, including, but not limited to, representations and warranties, covenants, events of default and conditions to closing.
“This is a key step for AgriFORCE to drive a strategic integration approach of crops, operations, facilities, systems and environment in the development of IP that improves controlled-environment agriculture (CEA), and field agriculture, including plant yields, nutrition, taste and pureness of quality. Our goal is to address some of the biggest challenges and legacy issues in these key critical sectors and in the continual pursuit of clean, green, better crops and plant-based products and ingredients.” (1) Based on FX Rate Euro to US$ 2020 1.141357 and 2021 Euro to US$ 1.192735Troy McClellan, President of AgriFORCE Solutions