Represents collaboration with Stronghold Engineering Inc. and Stronghold Power Systems Inc. in the City of Coachella
With full operational optimization, management believes that each new facility will generate more than $40 million in annualized, high-margin IP royalty and leasing fees to the Company. 1
Many facilities are planned to enable farmers to produce high quality crops and intended to provide local employment to support the community
VANCOUVER, British Columbia, Sept. 22, 2022 (GLOBE NEWSWIRE) — AgriFORCE Growing Systems Ltd. (“the Company”) (NASDAQ: AGRI; AGRIW)an intellectual property (IP)-focused AgTech company dedicated to advancing sustainable agriculture and yield optimization across multiple platforms, today announced that it has entered into a three-way agreement with Stronghold Power Systems Inc. . (SPSI) and Stronghold Engineering Inc. (SEI). ), where AgriFORCE will acquire and the Parties will jointly develop a 34-acre property, which will serve as the first Coachella Campus for AgriFORCE’s proprietary and state-of-the-art controlled environment agriculture (“CEA”) facilities facility.
The agreement represents a collaboration between AgriFORCE, SEI and SPSI, in the City of Coachella. SPSI is a subsidiary/division of SEI, a California-based, nationally renowned design and construction firm. SEI was nominated as the general contractor for the project. The property is strategically located with access to power provided by SPSI, as well as distribution networks supported by the City of Coachella.
At full operational optimization, each new facility is expected to generate more than $40 million in annualized, high-margin IP royalty and leasing fees to the Company.1 The purchase price for the land is $2.8 million in AgriFORCE common stock and $1.5 million in cash at the time of the property transfer, which is expected in the first quarter of 2023. Additionally, according to the terms of the purchase agreement, the Infrastructure costs will primarily be borne by SEI, which is expected to increase AgriFORCE’s property value. Through this property agreement, AgriFORCE estimates to reduce capital costs for the first site by $4.8 million in Phase 1 of the development. The Parties hope to finance the balance of the construction through project financing, based on long-term customer agreements.
The campus will include cultivation facilities, with advanced facility designs, automated integrated growing systems, and advanced environmental control systems, utilizing the Company’s extensive IP-based AgTech platform. These facilities are designed to use less resources than traditional CEA facilities, such as water and electricity, as well as deliver optimized plants for the benefit of customers.
Troy McClellan, President of AgriFORCE Solutions, stated that “AgriFORCE is pleased to partner with Stronghold Engineering and Stronghold Power Systems to acquire this strategic asset to enhance our Coachella Campus. This collaboration will enable us to advance the deployment of our proprietary IP to deliver state-of-the-art agricultural facilities and operating methods, allowing for the production of better crops. We believe that once completed, this development will bring more agriculture, job opportunities, as well as community engagement activities, illustrating our commitment to positive change in farms, food, and families every day, everywhere.
Scott Bailey, Founder of Stronghold Power Systems, Inc. and COO of Stronghold Engineering, Inc. shared, “The team at Stronghold Power Systems is excited to be involved in this project. We have been working with AgriFORCE for approximately four years now and it is great to see it come to fruition. This is a culmination of many hours to work with all our companies and stakeholders to bring a world-class research and development center to the Coachella Valley, focused on new agricultural growth technologies. We are proud to be part of this alliance at AgriFORCE, as we support their mission to make positive changes in the world by sustaining and improving agriculture for our future.
1Based only on current market prices (as of September 16th, 2022) and internal engineering and financial modeling in AgriFORCE. This is only an estimate and not a projection of future performance. The Company’s ability to meet any estimates is subject to a number of factors, such as, but not limited to, market conditions, demand, force majeure events, etc.
About Stronghold Power Systems Inc.
Stronghold Power Systems Inc. was formed to provide innovative solutions for Municipalities and Developers seeking to build or expand their current power generation capabilities. The company specializes in providing multi-faceted solutions for clients that may include designing, building, financing, operating and maintaining their electrical systems. With extensive experience in mid- to large-scale solar development, as well as micro-grid design and construction, Stronghold Power Systems can offer turnkey solutions that go beyond traditional power systems.
www.strongholdpowersystem.com
About Stronghold Engineering Inc.
Stronghold Engineering, Inc. is an ENR-ranked, award-winning design and construction firm specializing in prestigious projects for some of the country’s largest organizations. Started as a small electrical contracting operation from their kitchen table, husband and wife team, Scott & Beverly Bailey, have invested more than 30 years in Stronghold. Their efforts have helped grow the company into a full-service design and construction firm that has completed a wide range of technically challenging projects including high-profile ground-up facilities. , historic renovations, significant seismic upgrades, and large power generation systems from both. renewable and non-renewable sources. Stronghold has also done a lot of work in the civil, electrical, and infrastructure fields, with over 500 federal contracts completed and total projects exceeding $2.5 billion in construction costs.
www.strongholdengineering.com
About AgriFORCE
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an AgTech company focused on developing and acquiring crop production know-how and intellectual property complemented by advanced AgTech facilities and solutions. Looking to serve the global market, the Company’s current focus is on North and Central America, Europe, and Asia. AgriFORCE’s vision is to be a leader in delivering plant-based foods and products through advanced and sustainable AgTech solution platforms that make a positive difference in the world—from seed to on the table. AgriFORCE’s goal: Clean. Green. Better. More 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 contain forward-looking statements and are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from those contained 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.
Company Contact:
Ian Pedersen
Tel: (604) 757-0952
Email: ipedersen@agriforcegs.com
Investor Relations:
Crescendo Communications, LLC
David Waldman/Natalya Rudman
Tel: (212) 671-1021
Email: AGRI@crescendo-ir.com
Media Relations:
The Peppercomm
Hannah Robbins
Tel: (415) 633-3205
Email: AgriFORCE@peppercomm.com
