AgriFORCE Growing Systems Ltd.
(“the Company”)
(NASDAQ: AGRI; AGRIW), an intellectual property
(IP)-focused AgTech company dedicated to advancing sustainable
cultivation and crop optimization across multiple platforms, today
announced it has entered into a three-way agreement with Stronghold
Power Systems Inc. (SPSI) and Stronghold Engineering Inc. (SEI),
whereby AgriFORCE will acquire and the Parties will jointly develop
a 34-acre property, which will serve as the first Coachella Campus
for AgriFORCE’s proprietary and state-of-the-art controlled
environment agriculture (“CEA”) facilities.
The agreement represents a collaboration between AgriFORCE, SEI
and SPSI, in the City of Coachella. SPSI is a subsidiary/division
of SEI, a California-based, nationally renowned design and
construction firm. SEI has been nominated as the general contractor
for the project. The property is strategically located with access
to power that will be provided by SPSI, as well as distribution
networks supported by the City of Coachella.
At full operational optimization, each new facility is expected
to generate in excess of $40 million of annualized, high-margin IP
royalty and leasing fees to the Company.1 The purchase price
for the land is $2.8 million of AgriFORCE common stock and $1.5
million of cash at the time of property transfer, which is expected
during the first quarter of 2023. Additionally, according to the
terms of the purchase agreement, infrastructure costs are to be
principally born by SEI, which upon completion is expected to
enhance the value of the AgriFORCE property. Through this property
agreement, AgriFORCE estimates it will reduce the capital
expenditures for the first site by $4.8 million in Phase 1 of the
development. The Parties expect to finance the balance of
construction through project financing, based on long-term customer
agreements.
The campus will include cultivation facilities, featuring
advanced facility design, automated integrated growing systems, and
advanced environmental control systems, leveraging the Company’s
broad IP-based AgTech platform. These facilities are designed to
utilize less resources than traditional CEA facilities, such as
water and electricity, as well as deliver optimized crops for the
benefit of customers.
Troy McClellan, President of AgriFORCE Solutions, stated
“AgriFORCE is thrilled to collaborate with Stronghold Engineering
and Stronghold Power Systems to acquire this strategic property to
develop our Coachella Campus. This collaboration enables us to
advance deployment of our proprietary IP to deliver cutting edge
agricultural facilities and operating procedures, allowing the
production of better crops. We believe that once completed, this
development will bring enhanced agriculture, job opportunities, as
well as community engagement activities, illustrating our
commitment to positively transform farm, food, and family every
day, everywhere.”
Scott Bailey, Founder of Stronghold Power Systems, Inc. and COO
of Stronghold Engineering, Inc. shared, “The team at Stronghold
Power Systems is excited to be involved with this project. We have
been working with AgriFORCE for approximately four years now and
it's great to see this come to fruition. It is a culmination of
many hours of hard work by all of our companies and stakeholders to
bring a world class research and development center to the
Coachella Valley, focused on new agricultural grow technologies. We
are proud to be in this alliance with AgriFORCE, as we support
their mission to making positive changes in the world through
sustainability and improving agriculture for our future.”
1Based solely on current market prices (as of September 16th,
2022) and AgriFORCE’s internal engineering and financial modelling.
This is only an estimate and not a projection of future
performance. The Company’s ability to meet any estimates is subject
to many factors, such as, but not exclusively, market conditions,
demand, force majeure events, among others.
About Stronghold Power Systems Inc.
Stronghold Power Systems Inc. was formed to
provide innovative solutions for Municipalities and Developers
looking to build or expand their current power generation
capabilities. The company specializes in providing multi-faceted
solutions for clients which can include designing, building,
financing, operating and maintaining their electrical systems. With
extensive experience in mid to large scale solar development, as
well as micro-grid design and construction, Stronghold Power
Systems can offer turnkey solutions that extend outside of
traditional power systems.
www.strongholdpowersystem.com
About Stronghold Engineering Inc.
Stronghold Engineering, Inc. is an ENR-ranked,
award-winning design and construction firm specializing in renowned
projects for some of the nation’s largest organizations. Started as
a small electrical contracting operation from their kitchen table,
husband and wife team, Scott & Beverly Bailey, have invested
over 30 years in Stronghold. Their efforts have helped grow the
company into a full-scale design and construction firm that has
completed a wide array of technically challenging projects
including high-profile ground-up facilities, historic renovations,
significant seismic upgrades, and large power generation systems
deriving from both renewable and non-renewable sources. Stronghold
has also performed considerable work in the civil, electrical, and
infrastructure fields, with over 500 federal contracts completed
and total projects exceeding $2.5 billion in construction cost.
www.strongholdengineering.com
About AgriFORCEAgriFORCE
Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an AgTech company
focused on the development and acquisition of crop production
know-how and intellectual property augmented by advanced AgTech
facilities and solutions. Looking to serve the global market, the
Company’s current focus is on North and Central America, Europe,
and Asia. The AgriFORCE 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 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.
Connect with AgriFORCE on LinkedIn: 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 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.
This announcement is for informational purposes only and does
not constitute an offer to sell or a solicitation of an offer to
buy securities of the issuer. Any offer to sell or solicitation of
an offer to buy securities of the issuer may only be made pursuant
to a valid prospectus pursuant to an effective registration
statement or pursuant to a valid exemption from registration under
the Securities Act of 1933, as amended and the rules and
regulations promulgated thereunder.
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:PeppercommHannah Robbins Tel:
(415) 633-3205Email: AgriFORCE@peppercomm.com
AgriFORCE Growing Systems (NASDAQ:AGRI)
Historical Stock Chart
From Mar 2024 to Apr 2024
AgriFORCE Growing Systems (NASDAQ:AGRI)
Historical Stock Chart
From Apr 2023 to Apr 2024