Benzinga | Jan 11, 2022 09:04AM EST

AgriFORCE Offers Update On Planned Acquisition Of Horticulture, Consulting Firm

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, today provided an update on its planned acquisition of a leading AgTech European consultancy focused on driving agricultural optimization, innovation, solutions, and operational expertise in the agriculture, horticulture, and Controlled-Environment Agriculture (CEA) sectors.

As previously announced, the Company had entered into a binding letter of intent to acquire the AgTech consultancy in October 2021, subject to completion of due diligence and entry into a definitive purchase agreement. The Company reports that it has now completed its due diligence, which was conducted by DVDW, a Dutch Law Firm and Grant Thornton, an international accounting firm.

Ingo Mueller, CEO of AgriFORCE Growing Systems, commented: "As we had reported, the target company achieved 2020 annual consulting audited revenues of over US$26 million and EBITDA of US$3 million (IFRS-based).* In addition to reviewing the financial and legal information, we conducted physical visits of the target's innovation centers. During these tours, we observed first-hand how these centers are being used as commercial testing grounds for optimizing crops in a real-world setting for both commercial farmers and suppliers--providing both with commercial results and innovation that are not easily replicated in other environments without extensive capital and working relationships." He added: "As a result of the completion of due diligence, we expect to finalize the definitive agreement by the end of January 2022, and hope to close as soon as it is practicable to do so."