On March 15, AgriFORCE Growing Systems Ltd. (AGRI) continued to rise in the premarket while it had been bullish for the past few days. This bullishness is a result of the company’s binding LOI for acquiring Deroose Plants NV. The company had announced the binding LOI for acquiring one of the largest tissue culture propagation companies in the world on March 10. AGRI stock has been bullish since the news emerged and has so far continued the bullish trend in the premarket today as well.
At the time of writing, the stock had increased by a further 22.47% to trade at $4.85 per share in the premarket. In the previous trading session, AGRI was able to add a good 25.71% while 113.65 million shares exchanged hands. The volume of the day remained super active at 1,758% of the average. At the close of the previous trading session on Monday, the stock had a price of $3.96 per share.
The agriculture-oriented technology company, AgriFORCE Growing Systems Ltd. is based in Canada. Currently, the company’s 15.06 million outstanding shares trade at a market capitalization of $47.43 million.
AGRI’s Binding LOI
As per the announcement, the company has entered into a binding letter of intent for the acquisition of Deroose Plants NV. With more than 800 employees and 2.11 million sq. ft. lab and greenhouse facilities, Deroose has operations in Europe, North America, and Asia. Furthermore, as per unaudited financials, Deroose had an EBITDA of US$4.2 million on revenue of US40.5 million in 2021.
While the LOI is subject to standard due diligence and definitive purchase agreement, the net purchase price by AGRI is expected to be US$69 million. This includes $46.4 million approx. for the Deroose business (cash and debt-free basis) and $22.6 million for its IP portfolio.
On March 09, the company announced its participation in the 34th Annual Roth Conference held on March 13 to 15, 2022. The company’s management was invited to present at the conference in Dana Point, California.
Previously, AGRI also participated in the Gravitas’ 5th Annual Growth Conference which took place on March 03, 2022. The company’s CEO Ingo Mueller presented at the conference and fielded investors’ questions along with individual investor meetings.
AGRI’s Convertible Debt Facility
On March 08, the company announced the execution of a non-binding term sheet for a planned convertible debt facility of up to $20 million with an accredited institutional investor. Moreover, the conversion price of the Notes is $2.75 per share. AGRI intends to use the net proceeds for the acquisition of Delphy Groep BV.