AgriFORCE Growing Systems Announces Binding LOI to Acquire Deroose Plants NV, One of the Largest Tissue Culture Propagation Companies in the World

AgriFORCE Growing Systems Announces Binding LOI to Acquire Deroose Plants NV, One of the Largest Tissue Culture Propagation Companies in the World

Deroose acquisition brings multi-national operations, over 2.11 million square feet in laboratory and greenhouse facilities, and a proprietary portfolio   of genetic IP for plantation and food crops

Deroose's unaudited 2021 annual revenues were US $40.5 million   with EBITDA of approximately US $4.2 million

AGRIFORCE Growing Systems Ltd. ("the Company") (NASDAQ: AGRI; AGRIW) an intellectual property (IP)-focused AgTech company dedicated to advancing sustainable cultivation and crop processing across multiple verticals, has 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.

Founded in 1980, Deroose has multi-national operations in Europe, North America, and Asia, over 2.11 million square feet of laboratory and greenhouse facilities 1 , and over 800 employees 2 . Deroose's unaudited 2021 revenues were US$40.5 million ( 3 ) with EBITDA of approximately US$4.2 million ( 4 ) .

The binding LOI is subject to completion of standard due diligence and entry into a definitive purchase agreement, which shall include commercially standard terms and conditions, including, but not limited to, representations and warranties, covenants, events of default and conditions to closing.

The net purchase price by AgriFORCE is expected to be approximately US$69 million. The purchase price represents approximately $46.4 million for the Deroose business on a cash and debt free basis and $22.6 million for the IP portfolio.

Transaction Highlights
The AgriFORCE acquisition of Deroose is expected to provide the following strategic benefits:

  • Strengthens AgriFORCE's integrated AgTech business model by providing a leading position in tissue culture propagation and plant cultivation, including a robust IP portfolio, aimed at delivering increased crop yields with a reduced environmental footprint.
  • Enables AgriFORCE and Deroose to drive further growth in core markets for the development and trade of horticulture, plantation crops, as well as fruits and vegetables, building on Deroose's IP, driving improved genetics and higher yields.
  • Building on Deroose's strong financial performance and consistent growth in multiple locations across the world, AgriFORCE and Deroose plan for additional growth through expansion into new and high value crops.

Ingo Mueller, CEO of AgriFORCE Growing Systems, commented: "Adding to the momentum of our recent definitive agreement with Delphy Groep BV (Delphy) , we look forward to welcoming Deroose into the AgriFORCE family of companies, as we continue to move forward with our vision to become a world leader in delivering next-generation foods and plant products for businesses and consumers. Our two companies are strongly aligned with transforming the agriculture industry through IP, innovative technologies and expertise that enable cleaner, better crops with reduced environmental impact. Deroose's specific crop IP enables increased yields per hectare for crops such as rubber, palm and banana. This is particularly important where arable land is scarce and restricted ( 5 ) and with governments no longer allowing additional land to be made available for these crops. 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."

Maurice van Winden, the CEO of Deroose Plants NV, added: "With over 40 years of history, Deroose is a highly innovative company specialized in tissue culture propagation, and we are very excited to join AgriFORCE. Both our IP and vision are highly complementary, as we are committed to growth through the development of new plants, new cultivation techniques, and pursuing new market opportunities. We are extremely excited about commercializing our new portfolio of genetics for plantation and food crops.  We have invested over a decade in development of this IP and believe we can significantly improve the impact that these crops have on the environment, while providing much needed supply sources to the rubber and food industries. Furthermore, strengthening our foothold in North America and accelerating growth into new crops is a strong focus for us in the years ahead."

(3)Euro to US Dollar Spot Exchange Rates for 2021: Average exchange rate in 2021: 1.183 USD
(4)EBITDA Reconciliation

2021 (Forecasted)
(in US$ ‘000's)
Net income 1,644
Depreciation and Amortization 1,867
Interest expense 919
Income tax expense 515
Nonrecurring items (735 )
EBITDA 4,210

(5)United Nations General Assembly October 14, 2019

About Deroose Plants NV
The Deroose Plants Group is a global supplier of young plant material for growers and plantation owners. Propagation-as-a-service is also offered to young plant breeders and propagators. The Company has been active in tissue-culture cloning of plants since 1980. Currently Deroose Plants are produced in locations in Europe, USA (Florida) and Asia. Deroose is one of the biggest T.C. propagators in the world, with over 800 employees.

About AgriFORCE
AGRIFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is an AgTech company focused on the development and acquisition of crop production know-how and intellectual property augmented by advanced AgTech facilities and solutions. Looking to serve the global market, the Company's current focus is on North America, Europe and Asia. The AGRIFORCE vision is to be a leader in delivering plant-based foods and products through advanced and sustainable AgTech solution platforms that make positive change in the world—from seed to table. The AGRIFORCE goal: Clean. Green. Better. Additional information about AGRIFORCE is available at: www.AGRIforcegs.com.

Follow AgriFORCE on Twitter: @agriforcegs
Follow AgriFORCE on Facebook: AgriFORCE Growing Systems Ltd.
Connect with AgriFORCE on LinkedIn: AgriFORCE Growing Systems Ltd.

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.

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:
Denise Sabet
Tel: (604) 757-0952
Email: dsabet@agriforcegs.com

1 As per management's previously audited financial statements.
2 https://derooseplants.com/our-company--history/


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

AGRI
The Conversation (0)
Bion Announces Strategic Alliance with Transparency Wise

Bion Announces Strategic Alliance with Transparency Wise

Bion Environmental Technologies, Inc. (OTC QB: BNET), a developer of advanced livestock waste treatment technology and premium sustainable beef, announced today a Letter of Intent with Transparency Wise, LLC, (TW) of St Petersburg, FL. Bion and TW will work to define a strategic partnership focused on providing their mutual producer partners and supply chain participants with resources and technology to measure, verify, and report regenerative practices and climate-smart impacts.

TW will provide Bion and their producer partners with TW's AgWise.io agricultural data management platform to measure, monitor, report, and quantify livestock production data. Relevant data will be shared with appropriate supply chain stakeholders and, ultimately, with the consumer via the Transparency Wise consumer app. TW will utilize their blockchain integration with IBM Food Trust TM to leverage the integrity of data collected.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
Potash’s Crucial Role: Boosting Yields and Supporting Eco-Friendly Agriculture

Potash’s Crucial Role: Boosting Yields and Supporting Eco-Friendly Agriculture

(NewsDirect)

ValueTheMarkets News Commentary As the global population continues to grow, the demand for agricultural production is increasing exponentially. To meet this demand while protecting the environment, sustainable agriculture practices are playing a more important role. One essential nutrient significant in sustainable agriculture is potash, a potassium-rich compound. Here we discuss agricultural protection with regards to BHP Group Ltd (NYSE: BHP), Nutrien Ltd (NYSE: NTR), Sage Potash (TSX.V: SAGE), AGCO Corporation (NYSE: AGCO) and Corteva, Inc (NYSE: CTVA).

News Provided by TheNewsWire via QuoteMedia

Keep reading...Show less
AgriForce to Present at the H.C. Wainwright Global Investment Conference on May 25th

AgriForce to Present at the H.C. Wainwright Global Investment Conference on May 25th

AGRIFORCE Growing Systems Ltd. ("the Company") (NASDAQ: AGRI; AGRIW) an intellectual property (IP)-focused AgTech company dedicated to advancing sustainable cultivation and crop processing across multiple verticals, today announced that Ingo Mueller, Chief Executive Officer of AGRIForce, will be presenting at the H.C. Wainwright Global Investment Conference which is being held on May 23- May 26, 2022 at the Fontainebleau Miami Beach Hotel, Miami FL. The conference will include virtual and in-person participation.

Mr. Mueller is scheduled to present in-person on Wednesday, May 25, 2022 at 12:00 p.m. ET. Management will also be available for one-on-one meetings with qualified investors throughout the conference.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
AgriFORCE Growing Systems Completes Acquisition of Food Production & Processing IP from Manna Nutritional Group

AgriFORCE Growing Systems Completes Acquisition of Food Production & Processing IP from Manna Nutritional Group

AGRIFORCE Growing Systems Ltd. ("the Company") (NASDAQ: AGRI; AGRIW) an intellectual property (IP)-focused AgTech company dedicated to advancing sustainable cultivation and crop processing across multiple verticals, today announced it has completed the previously announced acquisition of the intellectual property of Manna Nutritional Group (MNG). The IP encompasses patent-pending technologies to naturally process and convert grain, pulses and root vegetables, resulting in low-starch, low-sugar, high-protein, fiber-rich baking flour 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.

News Provided by GlobeNewswire via QuoteMedia

Keep reading...Show less
36 of the Best Ideas Companies to Present at the Spring into Action - Best Ideas Investor Conference on May 16th - 20th, 2022

36 of the Best Ideas Companies to Present at the Spring into Action - Best Ideas Investor Conference on May 16th - 20th, 2022

The Spring into Action- Best Ideas Virtual Investor Conference will take place on May 16th - 20th, 2022, where 36 SmallCap, MicroCap and NanoCap public companies will be presenting via virtual webcast to a global investor audience

The Spring into Action: VIRTUAL begins on Monday, May 16th, 2022, with a Biotech Discovery Day. Company presentations begin at 1:30 PM Eastern Time. Presentations will be webcast on Monday, Tuesday and Wednesday (May 16th, 17th and 18th) with 1x1 Meetings being held on Thursday and Friday (May 19th and 20th).

News Provided by ACCESSWIRE via QuoteMedia

Keep reading...Show less

Trulieve to Open Medical Cannabis Dispensary in Tampa, Florida

New Hillsborough County location will host grand opening celebration Friday December 13

Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., today announced the opening of a new medical cannabis dispensary in Tampa, Florida .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less
Cannabis leaves, US flag.

Cannabis Round-Up: DEA Postpones Rescheduling Hearing, Key Players Share Quarterly Results

November was a busy month for the cannabis industry, with a slew of US-centric developments.

A hearing on cannabis rescheduling was postponed until 2025, although the incoming Trump administration has signaled its intent to follow through on the change despite opposition from some Republican lawmakers.

Meanwhile, several states voted on cannabis measures, and companies reported their latest quarterly results.

Keep reading...Show less
Cannabis plants and a stock chart.

US Cannabis Sales Hit Record in October, Market Set to Reach US$55 Billion by 2030

Cannabis sales in the US reached a record high in October, with retail transactions totaling approximately US$2.8 billion, according to data from LeafLink, a wholesale cannabis platform.

While sales saw a slight 2.1 percent dip compared to September, they were up 6.2 percent year-on-year. Total retail cannabis sales in 2024 are expected to hit US$32.6 billion, representing a 10.8 percent increase over the previous year.

LeafLink attributes much of this growth to new licenses in states such as New York, New Jersey and Ohio.

Keep reading...Show less
Australia flag and cannabis.

Australian Senate Rejects Greens' Bill to Legalise Cannabis

The Australian Greens announced on Wednesday, November 27, that the Legalising Cannabis Bill 2023 was defeated in a 13 to 24 vote, preventing the federal legalisation of cannabis.

“The Labor and Coalition parties joined together to try and hold Australia back in the 1950s by blocking this desperately needed reform,” said Greens Senator for New South Wales David Shoebridge.

Shoebridge said on X that the parties “teamed up” to vote against legalizing cannabis in the Senate, “yet another example of the major parties working together to refuse any sort of progress.”

All 11 Greens Senators voted in favour of the Bill, as did Independent Senators Lidia Thorpe and Tammy Tyrrell.

Keep reading...Show less
Cannabis and Australian money.

Victoria Amends Driving Rules for Medicinal Cannabis Users, Changes Effective in Mid-2025

Both houses of parliament in Victoria, Australia, have successfully passed the Roads and Road Safety Legislation Amendment Bill 2024, Cannabis Council Australia said in a recent newsletter.

The organisation sees this as a “promising development” in the area, calling it a “critical legislative milestone." The bill's passing will allow for judicial discretion when decisions about medicinal cannabis are made.

Magistrates will now have the ability to evaluate individual cases where drivers who hold valid medicinal cannabis prescriptions test positive for THC, but show no signs of impairment.

Keep reading...Show less

Trulieve to Open Medical Cannabis Dispensary in Jacksonville, Florida

New Duval County location will host grand opening celebration Friday, December 6 th

Trulieve Cannabis Corp. (CSE: TRUL ) (OTCQX: TCNNF ) ("Trulieve" or "the Company"), a leading and top-performing cannabis company in the U.S., announced the opening of a new medical cannabis dispensary in Jacksonville, Florida on Saturday, November 23 .

News Provided by Canada Newswire via QuoteMedia

Keep reading...Show less

Latest Press Releases

Related News

×