AGRI is an agriculture-focused technology company that focuses on the development and commercialization of plant-based ingredients and products for businesses and consumers that deliver healthier and nutritious solutions.
The company also engages in the real estate holding and development activities; provision of management advisory services; and intellectual property development activities.
More and more we are hearing terms such as; plant-based, organic. Consumers are more dedicated than ever before to making health conscious decisions about their food habits. In turn, this trend has become a huge market potential as it shows no signs of letting up!
AgriForce Growing Systems, Ltd. (NASDAQ: AGRI) is an exciting player in the smart agriculture market that is dedicated to producing plant-based, healthy solutions to consumers.
The smart agriculture market is expected to grow from USD 12.9 billion in 2021 to USD 20.8 billion by 2026!
AGRI is on track to pilot test their first branded product specialty flour category under the brand un(Think) Foods with businesses and consumers later this year, positioning them favorably in a multi-billion dollar market!
The un(Think) brand aims to evolve the way people think about their favorite foods and create a new standard for nutrition.
AGRI’s recent acquisition of the IP of Manna Nutritional Group (MNG) has patent-pending technologies to naturally process and convert grain, pulses and root vegetables, resulting in healthier products, as well as a wide range of breakfast cereals, juices, natural sweeteners and baking enhancers. The core process is covered under a pending patent application in the U.S. and key international markets.
“We are excited to close on the acquisition of the MNG intellectual property, as it allows us to launch innovative consumer products that leverage our broad industry expertise and expanding multinational footprint. We have been working aggressively behind the scenes since first announcing the planned acquisition and look forward to launching our first product later this year. In addition to our own branded products, we are in discussions with food manufacturers to private label a variety of consumer products. We believe these products address a multi-billion dollar, underserved market in the all-natural flour, bakery and snack categories. Moreover, this acquisition is aligned with our broader strategy of leveraging our IP to meet the growing demand for healthy, delicious, and nutritious foods”.
AgriFORCE CEO Ingo Mueller
Our world currently faces many challenges when it comes to agriculture: broken food supply chains, pollution, pesticides, soil and water contamination, erosion, climate change, extreme weather, unsustainable environmental practices, a lack of nutrition and taste that stems from a global over-reliance on factory farming.
AgriFORCE Growing Systems’ (NASDAQ: AGRI) goal is to positively disrupt the broken agricultural system. From vegetables and fruits to plant-based food to medicine and supplements, they are reimagining not just what could be, but what must be.
In March of this year, AGRI entered into a binding letter of intent to acquire Deroose Plants NV (Deroose), one of the largest tissue culture propagation companies in the world with a leadership position in horticulture, plantation crops, and fruit and vegetables.
Deroose’s unaudited 2021 revenues were US$40.5 million with EBITDA of approximately US$4.2 million.
“We believe this positions AgriFORCE and Deroose to deliver value by maximizing the sustainability and productivity of available land, especially in tropical climates. In addition, we believe Deroose’s IP provides significant barriers to entry to potential competitors, given the robust patent estate, and typical timelines to research and develop such processes, which could easily exceed a decade. Finally, with the Deroose acquisition, we see opportunities to capitalize on a variety of business synergies, including building on Deroose’s Florida Campus to replicate Delphy’s R&D innovation center for the North American markets.”
AgriFORCE CEO Ingo Mueller
This company’s commitment to ongoing IP development and acquisition allows the their team to be miles ahead of where their competitors are. The company innovates, invents, creates and delivers advanced solutions that address some of the most serious challenges facing the food supply chain today.
“Our goal is to address some of the biggest challenges and legacy issues in these key critical sectors and in the continual pursuit of clean, green, better crops and plant-based products and ingredients.”
Troy McClellan, President of AgriFORCE Solutions
Greetings Investors,
Covid-19 has impacted the food supply chain and how we are able to access food as well as how it is produced. With the world’s population ever-growing and predicted to reach 9.1 billion by 2050, it has never been as crucial as it is right now to have companies like AgriFORCE, whose mission is to transform agriculture from growing the produce to the production process to deliver results in nutritious, sustainable foods, at the forefront of our minds.
Hydroponics has many benefits for humanity and the world as a whole. Standard field farming practices have seen a lot of negative press, from concerns about soil erosion to massive water consumption to food-bourne illness breakouts.
Hydroponic systems are soil-less, water-based farming processes. Rather than using soil for plant nutrition, crops are fed nutrient-rich water, negating a lot of the baggage that comes with soil-based methods.
Field farms account for up to 80% of the United States’ water usage but with hydroponics, 10x less water is used and sometimes in certain systems, the water is even recirculated to help cut back on more water waste.
Hydroponic systems use LESS chemicals as there is no need for herbicides and pesticides. Plants and crops grown in hydroponic systems grow 30% to 50% faster than those grown in soil.
Another benefit of hydroponic systems is that they are indoors, which means plants and crops can be grown year round in a temperature controlled environment which promotes healthier plants than those grown in soil as well as a much larger production to get out to consumers, which is integral to our society.
At AgriFORCE, their precision growth method is predicated on fundamental optimization, using up to 90 percent less energy, up to 70 percent less water, and up to 40 percent less fertilizer than most traditional indoor facilities or greenhouses.
With the climate ever-changing and the world looking towards more sustainable ways of living, we have to take a close look at the food supply chain, how our food/produce is produced and what ways we can cut back on energy spending to feed the future of our world.
Vertical farming uses a combination of energy-saving LED lights, minimal or no soil, recycled watering systems, and trays. In such an environment, studies have shown higher volumes of food produced per square meter, and prove that this produce can be more nutrient-dense than usual.
Formerly known as Canivate Growing Systems Ltd., the company changed its name to AgriFORCE Growing Systems Ltd. in November 2019.
AGRI develops and acquires intellectual property (IP) and businesses with the clear objective of improving plant cultivation and processing in order to meet growing consumer demand and global need. They aim to grow, produce and process all products in more environmentally respectful and sustainable ways.
AGRI is made up of a group of scientists, growers, architects, lighting designers, business strategists, finance professionals and more who bring extensive experience in helping plants thrive in indoor farming environments.
COMPANY HIGHLIGHTS
Traditional farming implements three approaches: outdoor, greenhouse, and indoor. AGRI introduces a unique fourth method – the AgriFORCE precision growth method informed by cutting-edge science and with the capability to leverage the latest advances in artificial intelligence (AI) and the Internet of things (IoT).
With IoT and AI utilization as well as nutrient delivery and cellular cloning, the company has developed a highly successful approach to produce larger crop yields using fewer resources.
Their foundational IP combines a uniquely engineered facility design and an automated growing system to provide a clear solution to the biggest problems plaguing most agricultural verticals. It was created to drastically reduce environmental impact, substantially decrease utility demands, and lower production costs, while still delivering daily harvests and a higher crop yield.
AgriFORCE provides what others in the industry can’t: a comprehensive and proprietary system that addresses the unique needs of each crop and that runs through the agricultural value chain to the end product.
AgriFORCE’s facilities are expertly constructed to allow all of the benefits of natural sunlight while maintaining a sealed, positive pressure environment to deliver adjusted optimal conditions to crops in terms of temperature, humidity, velocity, filtration and sanitation of airflow.
Along with providing natural light for the plants, they have designed near ideal supplemental lighting technology to achieve unprecedented luminous efficacy, providing distribution of the full light spectrum for the best possible growth conditions.
2) Automation and Artificial Intelligence:
The company’s systems utilize automated grow technology, powered by cutting-edge artificial intelligence (AI) and Internet of things (IoT). Their technology constantly improves and adjusts by using machine learning in order to achieve the highest possible crop yield, while concentrating on the lowest possible cost and a strategic use of resources.
3) Fertigation and Nutrients:
AgriFORCE is focused on improved yields, lower costs and reduced environmental impact. They use highly concentrated feed applications in repetitive small amounts. This substantially reduces the overall water use compared to traditional outdoor farming.
4) Micropropagation and Genetics:
AgriFORCE uses tissue culture and micropropagation to make sure that clean starter
materials – free of pests and diseases – are available for daily planting. Using asexual multiplication ensures genetic stability, while tissue culture will safeguard plant vigor and health.
CURRENT CHALLENGES IN AGRICULTURE
Consulting services
Together AGRI and Delphy will help create an Integrated AgTech company.
The acquisition in progress of consulting firm Delphy with 2021 revenues of US$28M and EBITDA of US$3M (IFRS audited) will provide a multi-national presence and over 200 employees & consultants and is intended to place the combined operations at the forefront of knowledge and research.
By leveraging the consultancy’s decades of experience, established customer base, and deep industry relationships, we will aim to provide integrated AgTech solutions to the company’s customers around the world.
Delphy has number of substantial growth opportunities
Goal is to double revenue over the next 4 to 5 years and increase corporate EBITDA margin to 20%.
Geographic expansion
Maximize Delphy’s digital platform – QMs
New Income Drivers
Core Consulting Revenue
With Deroose, AGRI aims to become a major player in the Tissue Culture & Young Plant market!
Created in 1980, Deroose is one of the most advanced bio-tech tissue-culture and young plant companies in the world, specializing in in-vitro initiation of plant cultures, propagation and rooting under controlled environmental conditions.
Key Considerations (as provided by Deroose Management and unaudited)
Key Leader in Floriculture and Foliage, Advanced IP in Sustainable Plantation Crops Plants, Developing business in Fruit and Vegetables
Integration Is Key
AgriFORCE brings an entirely new approach to crops, operations, facilities, systems and the growing environment. The key to success, is understanding how each of the elements – crops, operations, facility, systems, and environment (COFSE) – work together to produce exceptional results.
Crops
AgriFORCE is focused on food security, starting with the seed. They develop optimized genetics through advanced tissue culture and micropropagation. Among the many benefits are increased yields and lower production costs. The goal is to deliver better tasting, more nutritious and consistently high-quality vegetables, fruits and plant-based products that are grown and produced sustainably.
Operations
AGRI has a cohesive approach to operations from advanced propagation to cultivation to harvest standard operating procedures to the production process for plant-based foods. They focus on enhanced automation, ensuring that the plants are touched as little as possible by humans. This results in substantive capital investment, leading to reduced ecological impacts, and resource and operational savings.
Facilities
Their facility and its specialized roofing, were created to allow for the full light spectrum.
AGRI has designed a specialized facility that includes a high-tech, high-efficiency building envelope and proprietary construction engineering and materials. It creates the ability for natural sunlight indoors with the support of supplemental grow lighting.
This includes the function of their solar foam. This is best described as translucent, virtual clouds that – in response to real-time data – are dynamically implemented across the roof relevant to weather/climate conditions. The virtual clouds allow for solar gain control and the diffusion of light without affecting the light spectrum. This proprietary solar foam also provides the ability to manage the temperature of the facility in a more natural, cost-effective and sustainable way.
Systems
The AgriFORCE systems include Internet of things (IoT) and artificial intelligence integrated facility and system controls. This includes critical sensing and monitoring interface equipment, advanced AgTech automated grow systems, proprietary high-efficiency grow channels, and hybrid hydroponic-aeroponic nutrient systems. The AgriFORCE lighting system is designed to respond to the external weather and climate conditions, using real-time data to adjust the internal environment with a focus on the optimum microclimate for the plants.
Environment
AGRI develops and maintains high-efficiency climate control equipment, micro-climate delivery materials and systems, and automated chronological/meteorological/biological integrated controls. Crops are grown in a sealed environment that is herbicide and pesticide-free.
Development and Commercial Status
AGRI proprietary facility design is an environmentally friendly and clean form of growing high-value crops to European Union Good Manufacturing Practices (EU- GMP) pharma-grade standards in almost any extreme weather environment.
The AGRI proprietary IP focuses achieving plants full genetic potential via four pillars that are designed for agricultural, nutraceutical and pharmaceutical crops
Barbados Medical Cannabis Project: Expected $24.5M Gross Revenue with over 50% Operating Margin Annually over 5 Years!
AgriFORCE will deploy its foundational IP, including a proprietary facility design, production and operation technologies, and automated growing system for the cultivation and sale of cannabis into the Caribbean and global pharmaceutical and medical cannabis markets.
Patent-pending technology to naturally process and convert grain, pulses, and root vegetables. Process resulting in low-starch, low-sugar, high-protein,
fiber-rich baking flour products, and nutrition liquid.
Nutrition values of flour has the potential to transform Consumers’ diet in multiple verticals.
un(Think) Foods – First focus on wheat
Wheat represents 20% of the worldwide caloric consumption
un(Think) Wheat flour has clear nutritional advantages
Un(Think) products will aim at challenging the norms and providing consumers products and branded premium ingredients that address their needs without the need to compromise.
Ingo Mueller
CEO
Ingo has been involved in the finance and advisory business for the past 25 years. His previous executive experience includes being the CEO of W!GU City Edutainment Centres PLC, London Mining PLC (Colombia), and International Coal Company Ltd.
Troy McClellan
PRESIDENT OF AGRIFORCE SOLUTIONS DIVISON
Troy has focused on innovative design and construction technologies throughout his career driving development and growth. Most recently, Troy was the VP of Design and Development at W!GU City. Previously, he was VP of Design and Development at MGM, a Project Manager at Wynn Resorts and a Design Manager at Universal Studios (Japan). Troy is a registered professional architect and received his Masters Degree in Architecture from Montana State University.
Mauro Pennella
PRESIDENT OF AGRIFORCE BRANDS DIVISON and CMO AGRIFORCE GS.
Mauro brings over 30 years of expertise to AgriFORCE Growing Systems. Mauro oversees the creation, growth and P&L of the Company’s Brands division. He also leads the brand, marketing and communications teams for AgriFORCE Growing Systems – creating a holistic, integrated overarching brand platform across all our divisions. Prior to joining AgriFORCE Mauro was Chief Growth & Sustainability Officer at McCain Foods and he also led and held senior executive roles at Combe Incorporated, Conagra’s Lamb Weston, Diageo and Procter & Gamble.
Richard Wong
CHIEF FINANCIAL OFFICER
Richard has over 25 years of experience in both start-up and public companies in the consumer goods, agricultural goods, manufacturing, and forest industries. Richard has served as the CFO of Emerald Harvest Co., Dan-D Foods Ltd., and was the Director of Finance and CFO of SUGOI Performance Apparel, and a partner at First Choice Capital Advisors and Lighthouse Advisors.
Vancouver-based, AgriFORCE Growing Systems Ltd, (NASDAQ: AGRI) is an agriculture-focused technology company that focuses on the development and commercialization of plant-based ingredients and products for businesses and consumers that deliver healthier and nutritious solutions.
Sitting in a multi-billion dollar, underserved market with recent exciting acquisitions that position them favorably, AGRI is well on its way to becoming the leader in Agtech!
AGRI’s acquisition of Manna Nutritional Group allows the company to launch innovative consumer products that leverage their broad industry expertise and expanding multinational footprint, all while serving multi-billion dollar markets!
AGRI’s exciting acquisition Delphy, with 2021 revenues of US$28M and EBITDA of US$3M will provide a multi-national presence!
AGRI is set to positively disrupt the broken legacy agricultural system. From vegetables and fruits to plant-based food to medicine and supplements, we are reimagining not just what could be, but what must be.
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