AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI) is engaged as an agricultural technology (AgTech) company, which is focused on the research, develop, and acquisition of crop production technologies and intellectual property. Shares of the AgTech company are skyrocketing 111% through early trading on Thursday, March 10, 2022. Over the past three months, AgriFORCE has seen average daily volume of 602,960 shares. However, volume of 73 million shares or dollar volume of around $243.09 million, has already exchanged hands through early trading.
Shares of AgriFORCE Growing Systems are soaring after the company announced that it has entered into a binding letter of intent to acquire Deroose Plants NV, among the largest tissue culture propagation companies in the world. Deroose Plants’ specifically stands out with leadership in horticulture, plantation crops, fruits and vegetables.
AgriFORCE will pay a net purchase price of $69 million, which includes the Deroose business and its strong intellectual property portfolio. The LOI is subject to standard due diligence and execution of definitive agreements.
If the transaction closes, Deroose would provide AgriForce with several major strategic advantages. Upon closing, AgriFORCE would retain a leadership role in tissue culture propagation and cultivation. The company says they also plan to expand on the IP portfolio, focusing on genetic improves and higher yields.
Deroose Plants was founded in 1980 and has operations across North America, Europe, and Asia. The company maintains over 2.11 million square feet of lab and greenhouse facilities and employs over 800 people. During 2021, Deroose Plants produced revenues of $40.5 million and an EBITDA of $4.2 million, on an unaudited basis.
Maurice van Winden, the CEO of Deroose Plants NV: “With over 40 years of history, Deroose is a highly innovative company specialized in tissue culture propagation, and we are very excited to join AgriFORCE. Both our IP and vision are highly complementary, as we are committed to growth through the development of new plants, new cultivation techniques, and pursuing new market opportunities. We are extremely excited about commercializing our new portfolio of genetics for plantation and food crops. We have invested over a decade in development of this IP and believe we can significantly improve the impact that these crops have on the environment, while providing much needed supply sources to the rubber and food industries. Furthermore, strengthening our foothold in North America and accelerating growth into new crops is a strong focus for us in the years ahead.”
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