AgriFORCE Provides Strategic Update
Implements strategy to prioritize near-term, cash flow opportunities as well reduce operating expenses and capex commitments
VANCOUVER, British Columbia, April 06, 2023 (GLOBE NEWSWIRE) -- AgriFORCE Growing Systems Ltd. (“the Company”) (NASDAQ: AGRI; AGRIW), an intellectual property (IP)-focused agtech company dedicated to advancing sustainable cultivation practices and food and plant products, today announced that as part of a strategy to focus on projects expected to generate near-term, positive cash flow, as well as reduce operating expenses and future capex commitments, the Company has decided not to move forward with the previously announced Stronghold agreement and related plans to develop a 34-acre property in the City of Coachella, or the Humboldt-Bliss agreement in Barbados.
AgriFORCE CEO, Ingo Mueller commented, “Given the current market environment and our desire to minimize equity dilution, we have taken steps to proactively reduce operating expenses, as well as pare back longer-term, more capital intensive projects, whilst continuing to advance our IP Portfolio as it pertains to food and growing systems.”
“Towards this end, as we have previously disclosed, we have undertaken an aggressive M&A strategy. Each of these in-process transactions continue to progress and we believe will be highly accretive and contribute significant cash flows. Meanwhile, we will continue to work with the Barbados government on the food nutrition and security feasibility analysis, utilizing the Company’s FORCEGH+ IP. We are also starting commercialization of our un(THINK) flour products, and preparing for the launch of the Radical Clean Solutions (RCS) hydroxyl technology for the destruction of pathogens, mold and volatile organic compounds (VOCs) within enclosed environments. We believe each of these initiatives can be advanced through a capital-efficient licensing and go-to-market strategy.”
Mueller further commented, “Overall, we are laser focused on executing our M&A strategy and believe that this approach, as well as new transformative opportunities we are actively pursuing, will enable us to maximize value for our shareholders. We look forward to providing updates on these and other developments in the weeks and months ahead.”
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. The AgriFORCE vision is to be a global 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.
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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.
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Released April 6, 2023