The stock of Agriforce Growing Systems Ltd (NASDAQ: AGRI) has skyrocketed in the early hours of Wednesday trading. Currently displaying gains of over 200%, the market has reacted incredibly well to the company’s intended acquisition of a European AgTech consultancy.
The intended acquisition was announced earlier today; AgriForce entered into a binding letter of intent to acquire the European consultancy in a logical move to drive innovation in the sector of sustainable cultivation and crop processing.
The decision by Agriforce will undoubtedly strengthen the company’s ability to thrive in the exploration and optimization of the agricultural sector. The consultancy boasted impressive 2020 numbers, with audited revenue of over $26 million, expecting to end 2021 with revenues of $28 million.
The acquisition is expected to encompass a mix of cash and stock, at a cost of roughly $29 million altogether. This deal is potentially groundbreaking for the agricultural industry – as AgriForce will be able to utilize the full benefit of the consultancy’s hardwired experience, facilities, and customer base. Innovative agriculture is attracting global investment as we seek to manage our changing needs.
Ingo Mueller, CEO of AgriFORCE Growing Systems, talks about the future potential of the new deal for the wider agricultural sector:
“This acquisition is an alliance of our complementary expertise and shared values. Both AgriFORCE and this leading European AgTech consultancy are dedicated to making positive changes in the lives of farmers and consumers. This is an unprecedented opportunity for exceptional innovation and through our synergies, expanded growth in both North America and Europe for both organizations.”
The AGRI stock spike has retraced from its initial burst, yet still holds onto impressive gains of 132%, trading in and around the $4.50 zone.
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