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, today provided the following letter to
shareholders from the Company’s CEO, Ingo Mueller:
“From the outset of and throughout 2022, world events and global
challenges including climate change, war, supply chain disruptions,
scarcity of water and the rising cost of energy have underscored
the importance of a transformative change to agriculture and food
systems. It is becoming increasingly evident that having systems in
place that allow for adaptation to such circumstances is crucial.
With climate change impacting fertile regions in North America and
Europe, we are going to need to look to places like Africa and
South America, which are having their own challenges of feeding
their growing populations.
From a consumer perspective, what is the result of these
conflicts and disruptive forces? Inflation and supply chain
disruption are leading to higher prices, making it more difficult
for the average consumer to pay for necessities. In order to
address these problems and pressures, we need to utilize
technologies and innovation to find efficiencies and produce food
intelligently. At the same time, we can identify ways to deliver
more nutrition with commonly grown crops thereby transforming food
to deliver more of what we need with less. For consumers, the
importance of access to safe, healthy and nutritious food continues
to be a priority. This also reflected in an increased emphasis on
sustainability globally, including from governments, financial
regulators, companies and customers.
It is apparent that the work we at AgriFORCE are doing is more
important than ever. While there are challenges in front of
humanity that need a progressive thinking business to tackle them,
these challenges present vast opportunities for AgriFORCE - and
with our unique knowledge, IP, and solutions, we are firmly
positioned at the forefront of this critical sector.
At AgriFORCE, 2022 was our first full calendar year as a public
entity and we achieved several noteworthy milestones.
First, we closed the acquisition of Manna Nutritional Group
which set a solid foundation for commercialization and scale up of
the revolutionary UN(THINK) Foods. The UN(THINK) processing IP
touches a multitude of categories, not only wheat but also other
grains, pulses, legumes and more. It provides the ability to
transform proteins and optimize the natural fiber content of
grains, thereby creating better-for-you products that are more
sustainably produced. It represents an evolution around
consumption, as consumers transition from products with empty
calories to highly nutritious foods. With its breadth of
application, we believe UN(THINK) is set to transform the food
industry.
Second, we have received shareholder approval for the
acquisition of Delphy Groep BV (“Delphy”), and as a result this
acquisition is expected to close in the upcoming weeks. This
enables AgriFORCE to drive the vision and offering of AgTech 2.0
across multiple markets globally.
Delphy has demonstrated tremendous abilities in agriculture
and horticulture and we have seen how powerful this expertise can
be to effect change. With Delphy’s presence in a multitude of
geographies and environments globally, their unique breadth of
knowledge as well as digital capabilities will be critical to
positively transform those environments.
We have been actively working with Delphy management to
establish our five-year plan and are focused on geographic
expansion with an emphasis on Germany and North America, as well as
more value-added offerings. This includes a heavy emphasis on
evolving Delphy’s knowledge and experience into digital offerings
as the industry increasingly moves towards adoption of advanced
technologies.
Third, with the licensing agreement for Radical Clean Solutions’
(RCS) patented technology, we are making important strides in
finalizing its application for commercializing a set of solutions
and devices to significantly reduce mold, pathogens and spoilage
within food and greenhouse facilities, as well as in warehousing
and transportation of food and plants. Given that so much food
intended to be shipped to consumers ends up being disposed of due
to contamination, the impact of this technology and how it can
drive sustainability is significant.
Fourth, we continue to progress toward the acquisition of
Deroose. We are actively taking the necessary steps to advance this
deal to completion. We will provide additional updates as
developments unfold.
Fifth, with AgriFORCE Growhouse, now referred to as FORCEGH+, we
have secured a number of key patents in Canada and the U.S. this
year and concluded the purchase of land property in Coachella,
California, which will be our site for the deployment of our IP and
first U.S. facility.
Throughout this year AgriFORCE continued to deliver and grow its
M&A portfolio, delivering a robust pipeline to successfully
integrate and build a comprehensive business to drive revenue and
EBITDA, as well as maximize value for shareholders.
With this in mind, we continue to enhance the company and have
bolstered our organizational capacity to manage and grow our
operational activities and increased capacity for M&A with the
addition of a number of strategic hires such as General
Counsel.
We are conscious of the current market conditions and as a
result have carefully refocused certain capital-intensive,
longer-term activities. Our strategy is to utilize capital
effectively and efficiently, thereby ensuring that the activities
we undertake, which do require capital, provide shareholders value
within the shortest timeframe possible. We will continue to explore
and evaluate longer term investments and prioritize them based upon
market conditions.
We believe 2023 will be a year where we will see catalyzing
developments for AgriFORCE:
- We will bring our first products
under UN(THINK) Foods to market. In particular, with the B2B and
direct to consumer launch of Awakened Flour, we hope to create a
new standard for sprouted flours. Following this, we plan to launch
our Power Flour which will bring superior nutrition with no
compromise to consumers. Additionally, we have several other
consumer products in the pipeline, for which we intend to provide
additional details in 2023.
- We will start advancing the
expansion of Delphy into North America as well as continue to build
our Delphy Digital platform and suite of services.
- We will launch our first RCS
products.
- We will continue to drive our
M&A strategy to further strengthen our AgTech 2.0
platform.
I’d like to highlight that our solutions, individually, address
multi-billion-dollar markets globally. We continue to believe that
as we hit major, meaningful milestones we are on a straight path to
profitability.
As we look ahead, we believe we have secured the foundational
pieces to transform our business in the near term. We believe 2023
will be a pivotal year in the company’s history and that we have
laid the foundation in 2022 to achieve major achievements and
successes in the coming year."
About AgriFORCE
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an
agtech company focused on building an integrated agtech platform
that combines the best technology, intellectual property and
knowledge to solve an urgent problem – providing the best solutions
to help drive sustainable crops and nutritious food for people
around the world. Looking to serve the global market, the Company’s
current focus is on North America, Europe and Asia. The AgriFORCE
vision is to be a leader in delivering plant-based foods and
products through an advanced and sustainable agtech platform that
makes positive change in the world—from seed to table. Additional
information about AgriFORCE is available at:
www.agriforcegs.com.
Follow AgriFORCE on Twitter: @agriforcegsFollow 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 RobbinsTel:
(415) 633-3205Email: AgriFORCE@peppercomm.com
AgriFORCE Growing Systems (NASDAQ:AGRIW)
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