AgriFORCE Announces Memorandum of Understanding to Deploy its Proprietary Facility and Intellectual Property in Barbados for the Production of High Value Medical and Agricultural Products
September 09 2021 - 8:45AM
AgriFORCE Growing Systems Ltd.
(“the Company") (NASDAQ:
AGRI;AGRIW), an innovative AgTech company focused on
developing and acquiring agriculture IP that advances sustainable
cultivation and processing for crops across multiple verticals,
today announced the signing of a Memorandum of Understanding
(“MOU”) with Humboldt Bliss, Ltd. (“Humboldt”), an agriculture and
aquaculture business based in Barbados, West Indies. Pursuant to
the MOU, the parties plan to deploy AgriFORCE’s foundational
intellectual property – including a proprietary facility design,
production and operation technologies, and automated growing system
(AgriFORCE Grow House) for the cultivation and sale of high value
medical and agricultural products into the Caribbean and global
pharmaceutical and agriculture markets.
Under the terms of the MOU, it is anticipated
that AgriFORCE will be responsible for the construction and
providing the full Standard Operating Procedures ("SOPs") of the
AgriFORCE Grow House, while Humboldt will be responsible for
securing the project’s land and facilities operations. Upon
production, Humboldt has committed to remit a licensing and
equipment leasing fee to AgriFORCE equal to a slight discount to a
commercial index for a minimum of 14,300 pounds of high value
medical and agricultural products per year. As an example, given a
current index price of approximately $1,900 per pound with a 10%
discount, a 14,300 pound annual minimum could potentially yield
annual gross revenue of $24,500,000.1 The initial contract would be
for a minimum 5-year term. The contract would be backed by a
rolling $5 million quarterly performance bond maintained by
Humboldt.
Commenting on the MOU, AgriFORCE’s CEO Ingo
Mueller stated, “Barbados is an exceptional opportunity to showcase
our technology with the country’s challenging tropical climate, as
well as the limestone rich soil conditions found on the island. In
turn, we believe this will add high-paying and technical jobs to
the Barbadian economy and contribute significant cash flow and
robust economic opportunities to AgriFORCE.”
The MOU is subject to execution of definitive
documentation acceptable to both parties. The intent of both
parties is to identify a property within 90 days and enter into a
Definitive Agreement within 120 days of the date of the MOU.
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
Barbados to sell, distribute and cultivate high value medical and
agricultural products for Caribbean markets. Humboldt has entered
licensing deals with a United States based Multi-state operator; as
well as Honey Vape, a multi-state e-pen manufacturer, to work in
partnership in expansion throughout the Caribbean.
About AgriFORCEAgriFORCE
Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an AgTech
company focused on developing and acquiring agriculture IP that
changes the way plant cultivation and processing is done to provide
more sustainable and better quality food, pharmaceuticals,
nutraceuticals and plant based products and ingredients. Our vision
is to be a leader in delivering plant-based foods and products
through advanced and sustainable AG Tech Solutions. The Company’s
foundational IP includes a proprietary facility design and
automated growing system for high-value crops focused on improving
the way that crops are grown. The Company calls its facility design
and automated growing system the “AgriFORCE Grow House.” The
Company has designed its AgriFORCE Grow House 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 the Company 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 PedersenTel: (604)
757-0952Email: ipedersen@agriforcegs.com
Investor Relations:Crescendo Communications,
LLCDavid Waldman/Natalya RudmanTel: (212) 671-1021Email:
AGRI@crescendo-ir.com
Media Relations:AHA Creative Strategies
Inc.Ruth AtherleyTel: (604) 846-8461Email: ruth@ahacreative.com
1 These statistics are merely set forth as an illustrative
example based upon potential market conditions. There is no
guarantee that these conditions will come about or, if they do,
that the Company will be able to fully capitalize upon them. Any
potential outcome is also conditioned upon the Company entering
into a binding definitive agreement with Humboldt.
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