Vancouver-based, 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.
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’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, which can be used in 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.
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 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
This company’s commitment to ongoing IP development and acquisition allows the their team to take a leadership position in the industry. The company aims to innovate and delivers advanced solutions that address some of the most serious challenges facing the food supply chain today.
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.
At AGRI, their precision growth method is predicated on fundamental optimization, designed to use 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.
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.
The company 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.
AGRI is different as they provide what others cannot, a comprehensive and proprietary system that addresses each crop’s unique needs. The company’s development and acquisition of Intellectual Property (IP) is focused on a holistic approach that allows for innovation and the creation of systems and processes that run throughout the entire value chain from seed to sale.
They have powered AgriFORCE Growhouse, a highly advanced facility design that merges a curated indoor microclimate with natural sunlight that is supported by supplemental grow lighting that maximizes production.
The AGRI team knows there is a fundamental need in the area of plant-based medicines and is dedicated to modifying existing IPs for vaccine crops. The company’s IP can be refined to work for specific crops, which allows them to continue developing new solutions, including in the area of plants that can be used in vaccine development which is important now more than ever.
AGRI is truly in a league of its own in many ways but one of the leading ways is how it prioritizes sustainability. They know it is integral to the future of our world to create more sustainable and green ways of producing our foods. The company’s proprietary growing facility is designed to use 90 percent less energy, up to 70 percent less water, and up to 40 percent less fertilizer than most traditional indoor facilities or greenhouses.
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.
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.
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.
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.
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, AgriFORCE aims 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%.
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.
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.
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.
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.
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.
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
ACUISITION OF MNG (MANNA) IP
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.
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.
AGRI’s exciting in process acquisition Delphy, with 2021 revenues of US$28M and EBITDA of US$3M will provide a multi-national presence!
AGRI sits in multi-billion dollar markets that are often underserved, positioning them as a LEADER as they tackle on a very important industry!
The smart agriculture market is expected to grow from USD 12.9 billion in 2021 to USD 20.8 billion by 2026! This significant growth is expected to continue as more and more attention is drawn to making health-conscious, sustainable decisions.
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!
AgriForce Growing Systems, Ltd.. is a client of Tradigital IR, an investor relations and communications firm. Please see our disclosures in the research report as well as on our website www.Tradigitalir.com.
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