AgriFORCE today announced that as part of a strategy to focus on projects expected to generate near-term, positive cash flow, as well as reduce operating expenses and future capex commitments, the company has decided not to move forward with the previously announced Stronghold agreement and related plans to develop a 34-acre property in the City of Coachella, or the Humboldt-Bliss agreement in Barbados.
The Stronghold plans were announced last September. The three-way agreement with Stronghold Power Systems Inc. (SPSI) and Stronghold Engineering Inc. (SEI) included AgriFORCE acquiring and the Parties jointly developing a 34-acre property, which would serve as the first Coachella Campus for AgriFORCE’s proprietary and state-of-the-art controlled environment agriculture facilities. The Humboldt-Bliss agreement dates from September 2021 and includes plans to deploy AgriFORCE’s proprietary facility design, production and operation technologies, and automated growing system (AgriFORCE Grow House) for the cultivation and sale of high-value medical and agricultural products into the Caribbean and global pharmaceutical and agriculture markets.
Reduce operating expenses
AgriFORCE CEO Ingo Mueller commented, “Given the current market environment and our desire to minimize equity dilution, we have taken steps to proactively reduce operating expenses, as well as pare back longer-term, more capital-intensive projects while continuing to advance our IP Portfolio as it pertains to food and growing systems.”
“Towards this end, as we have previously disclosed, we have undertaken an aggressive M&A strategy. Each of these in-process transactions continues to progress, and we believe it will be highly accretive and contribute significant cash flows. Meanwhile, we will continue to work with the Barbados government on the food nutrition and security feasibility analysis, utilizing the Company’s FORCEGH+ IP. We are also starting commercialization of our un(THINK) flour products and preparing for the launch of the Radical Clean Solutions (RCS) hydroxyl technology for the destruction of pathogens, mold, and volatile organic compounds (VOCs) within enclosed environments. We believe each of these initiatives can be advanced through a capital-efficient licensing and go-to-market strategy.”
Mueller further commented, “Overall, we are laser-focused on executing our M&A strategy and believe that this approach, as well as new transformative opportunities we are actively pursuing, will enable us to maximize value for our shareholders. We look forward to providing updates on these and other developments in the weeks and months ahead.”
For more information: