Palm Beach, FL – September 9, 2021 – FinancialNewsMedia.com News Commentary – The UN Food and Agriculture Organization estimates that the world would need to generate 70% more food by 2050 in order to meet the food demand. With the rapid growth of global population diminishing agricultural lands and depletion of scarce natural resources, the need to improve farm yield has become crucial. Here is where farm management and agriculture IP enter the picture. The growth of the farm management software market is driven by factors such as increasing implementation of cloud computing in real-time farm data management, growing population and subsequent rise in demand for food worldwide, and strengthening of intellectual property rights over agricultural innovations. Government support to encourage the adoption of modern agricultural techniques and focus on monitoring livestock performance and health to increase farm efficiency are also driving the growth of the farm management software market. A report from MarketsAndMarkets said that the global farm management software market is estimated to grow from USD 2.1 billion in 2021 to USD 4.2 billion by 2026 at a CAGR of 14.7% during 2021–2026. Active Companies in the markets today include AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI), Agrify Corporation (NASDAQ: AGFY), urban-gro, Inc. (NASDAQ: UGRO), AppHarvest, Inc. (NASDAQ: APPH), Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM).
The report said: “The production planning of the farm management software market is estimated to register largest market share in 2026, by farm production planning. The main driver for the farm management software market in the production planning segment is the increasing implementation of cloud computing in real-time farm data management, growing population and subsequent rise in demand for food worldwide, and strengthening of intellectual property rights over agricultural innovations. The farm management software market for data analytics services is projected to register the highest CAGR during the forecast period, by offering. The increasing need for real-time data management through cloud computing, government support to encourage adoption of modern agricultural techniques, and increasing use of agriculture software to maintain farm efficiencies are some of the major factors fostering the growth of the market.”
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI) BREAKING NEWS: AgriFORCE Announces Memorandum of Understanding to Deploy its Proprietary Facility and Intellectual Property in Barbados for the Production of High Value Medical and Agricultural Products – AgriFORCE Growing Systems Ltd. (“the Company”), an innovative AgTech company focused on developing and acquiring agriculture IP that advances sustainable cultivation and processing for crops across multiple verticals, today announced the signing of a Memorandum of Understanding (“MOU”) with Humboldt Bliss, Ltd. (“Humboldt”), an agriculture and aquaculture business based in Barbados, West Indies. Pursuant to the MOU, the parties plan to deploy AgriFORCE’s foundational intellectual property – including a 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.
Under the terms of the MOU, it is anticipated that AgriFORCE will be responsible for the construction and providing the full Standard Operating Procedure’s (‘SOP’s’) of the AgriFORCE Grow House, while Humboldt will be responsible for securing the project’s land and facilities operations. Upon production, Humboldt has committed to remit a licensing and equipment leasing fee to AgriFORCE equal to a slight discount to a commercial index for a minimum of 14,300 pounds of high value medical and agricultural products per year. As an example, given a current index price of approximately $1,900 per pound with a 10% discount, a 14,300 pound annual minimum could potentially yield annual gross revenue of $24,500,000.[1] The initial contract would be for a minimum 5-year term. The contract would be backed by a rolling $5 million quarterly performance bond maintained by Humboldt.
Commenting on the MOU, AgriFORCE’s CEO Ingo Mueller stated, “Barbados is an exceptional opportunity to showcase our technology with the country’s challenging tropical climate, as well as the limestone rich soil conditions found on the island. In turn, we believe this will add high-paying and technical jobs to the Barbadian economy and contribute significant cash flow and robust economic opportunities to AgriFORCE.” CONTINUED… Read this full release for AgriFORCE Growing Systems at: https://ir.agriforcegs.com/
[1] These statistics are merely set forth as an illustrative example based upon potential market conditions. There is no guarantee that these conditions will come about or, if they do, that the Company will be able to fully capitalize upon them. Any potential outcome is also conditioned upon the Company entering into a binding definitive agreement with Humboldt.
Other recent developments in the markets include:
Agrify Corporation (NASDAQ: AGFY), a developer of highly advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace, recently announced it has signed a definitive agreement (the “Agreement”) with its second Agrify Total Turn-Key Solution (“Agrify TTK Solution”) customer, True House Cannabis LLC (“THC”). THC is a minority-owned cannabis venture and an economic empowerment applicant that has recently applied to become a fully integrated tier-two licensed cultivator in Haverhill, MA, which is located approximately 30 minutes outside the city of Boston. Upon regulatory approval, THC plans to open two retail locations in Haverhill, MA and Methuen, MA.
Under the terms of the Agreement, Agrify will work with THC on the build-out of its 22,000 square foot facility (the “Facility”), including the installation of 159 of Agrify’s Vertical Farming Units (“VFUs”) along with integrated catwalks, integrated grow racks, and pest mitigation solutions. Agrify will also provide senior financing of up to $7 million to fund the construction of the Facility, which is expected to be repaid within 30 months following the commencement of the first commercial production at the Facility. In addition, Agrify will receive fixed SaaS revenue derived from THC’s use of the Agrify Insights
cultivation software, as well as additional production-based fees and brand licensing fees. The deal is expected to generate up to $45.3 million in revenue over the 10-year contract period.
urban-gro, Inc. (NASDAQ: UGRO), a fully integrated architectural, engineering and cultivation systems integration company for commercial cannabis and food-focused Controlled Environment Agriculture (“CEA”) facilities, recently reported record financial results with record revenues, the 4th consecutive quarter of positive Adjusted EBITDA, overall positive net income for the first time, and a significant increase in project backlog for its second quarter ended June 30, 2021.
Bradley Nattrass, Chairman and CEO, commented, “I am excited that we achieved positive net income for the first time in our company’s 8-year history. Our backlog of signed contracts continues to build, which demonstrates a strong runway for the 2nd half of the year. With the completed acquisition of MJ12 Design Studio which now establishes urban-gro as the only fully integrated architectural, engineering and cultivation systems integration company in the industry, we anticipate that the incremental projects and cross-selling opportunities will drive further high margin revenues and profits to the business.”
AppHarvest, Inc. (NASDAQ: APPH), a leading AgTech company, public benefit corporation and Certified B Corp focused on farming more sustainably using up to 90% less water than open-field agriculture and only recycled rainwater, recently announced its operating and financial results for the quarter ending on June 30, 2021.
“The industry has changed significantly from just three months ago as global extreme weather events, including drought in traditional agricultural regions, have underscored the necessity for CEA solutions,” said AppHarvest Founder and CEO Jonathan Webb. “We believe our innovative, sustainable approach, which captures free rainwater and sunlight through large glass roofs in Appalachia and leverages world-class technology at scale while maintaining the highest ESG principles, positions our company to be a global leader in this industry,” said Webb. “Our teams, including key seasoned executive recruits, are focused on operational execution and on delivering reliable, high-tech, climate-resilient food system solutions that reduce risk in our production environment and that can be replicated around the world.”
Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture (“CEA”), recently announced that it has signed a definitive agreement and closed on the acquisition of Canadian nutrient company, Greenstar Plant Products, Inc., manufacturer of the Grotek and Gaia Green brands. These brands join Hydrofarm’s lineup of high performance, proprietary branded products in the lighting, climate control, nutrients and growing media categories.
Hydrofarm funded the purchase price of approximately $83 million U.S. dollars ($103,635,000 Canadian dollars) using a combination of cash and the Company’s existing credit facility, and under the terms of the transaction agreement, Greenstar will become a wholly owned indirect subsidiary of Hydrofarm Holdings Group, Inc.
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