Benzinga | Dec 2, 2021 07:45AM EST

EXCLUSIVE: AgriForce Signs A Definitive Contract To Deploy Its Proprietary Grow House Facility And IP In Barbados For Production Of High Value Medical And Agricultural Crops

VANCOUVER, B.C. -- December 1st, 2021 -- AgriFORCE Growing Systems Ltd.

("the Company") (NASDAQ:AGRI, AGRIW))), an Intellectual Property

(IP) -focused AgTech company dedicated to advancing sustainable

cultivation and crop processing across multiple platforms, has signed a

definitive contract with Humboldt Bliss, Ltd. ("Humboldt"), an agriculture

and aquaculture business based in Barbados, West Indies. The contract is

for the deployment of the AgriFORCE foundational IP -- which includes a

proprietary facility design, production and operation technologies and

methods, and an automated growing system (the AgriFORCE "Grow

House") for the cultivation and sale of high value medical and agricultural

products into the Caribbean and global pharmaceutical and agricultural

markets.

Under the terms of the contract, AgriFORCE is responsible for constructing

its proprietary facility and providing the full Standard Operating

Procedures (SOPs) of the AgriFORCE Grow House and Humboldt is

responsible for securing the project's land as well as operating the facility.

Upon production, Humboldt has committed to remit an IP licensing,

1

management services and equipment leasing fee to AgriFORCE for up to 14,300

pounds (6,500 kgs) of high value medical and agricultural crops per year. Based

on AgriFORCE's internal financial modelling and current market index pricing,

the Company believes that the contract represents $12.7M of annual recurring

EBITDA.1 As the initial contract is for a five-year-term, the Company believes this

represents more than $63M in EBITDA1 over the initial term and with two five-

year automatic renewals, it anticipates the total contract EBITDA1 could be up to

approximately $190 million. The contract will be backed by a rolling $5 million

performance bond maintained by Humboldt.

AgriFORCE CEO Ingo Mueller, stated: "Finalizing this agreement is

exciting, and we are looking forward to deploying our Grow House facility

in Barbados. We believe that this facility may generate over $12 million

of EBITDA1 per year based on current contracts with the potential to

further expand production based upon up to a further 50% of available

installed capacity. Moreover, we have a robust sales pipeline and we

believe this is only the first of several agreements to roll out our Grow

House facilities in the coming months." He continued: "Like many

Caribbean countries, Barbados has a challenging tropical climate and

unique soil conditions that make some areas of agriculture such as high

value medical and agricultural products a real hurdle to overcome. Our

proprietary facility design and automated growing system and methods

addresses these issues and provides the ability to grow a range of crops

that would be too diffi cult to grow otherwise."

The AgriFORCE team sees this finalized agreement as an exceptional

opportunity to showcase their IP and to help to create high paying and

technical jobs for the people of Barbados, contributing to the country's

economic future. Said Mueller: "We anticipate that along with creating

significant cashflow for the Company, this contract will lead other

Caribbean countries and countries with tropical climates to appreciate the

value of our IP and how we can help contribute to their economies,

employment markets and, of course, help to advance agriculture in their

regions."

"The opportunity to use the AgriFORCE IP to grow crops in a sustainable

and profitable way in a challenging climate is exciting for the Humboldt

team." Says Robin P. Cho, Director from Humboldt. "With the AgriFORCE

business model, we are confident that we will quickly produce a strong

revenue stream that will contribute directly to the Company's bottom-line

as well as to the country's domestic and export market. It is a major

achievement for everyone involved, especially for Bliss and Barbados."

1. All EBITDA information provided in this press release is merely management's belief as to possible future

results. These numbers are not intended as projections and are not intended as an indicator or guarantee of

future performance.

About Humboldt

Humboldt is an agriculture and aquaculture business based in Barbados,

West Indies with deep roots and ties into the Barbadian business

landscape. Through its subsidiaries, Humboldt has applied for licensure

and entered into various licensing deals, leases, and partnerships in North

America and the Caribbean to sell, distribute and cultivate high value

medical and agricultural products for Caribbean markets. Humboldt has

also entered licensing and partnership deals with a United States based

multi-state dispensary operator; Cannabis Global Inc. (OTC:CBGL), a

publicly traded company focused on multiple growing verticals within the

global cannabis & CBD industry; as well as Honey Vape, a multi-state e-

pen manufacturer, to work in partnership in expansion throughout the

Caribbean and South America.

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.

Follow AgriFORCE on Twitter: @agriforcegs

Follow AgriFORCE on Facebook : AgriFORCE Growing Systems Ltd.

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 diff er 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 fi lings 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.