|AGRI now trading above the 50 DMA following yesterday’s gap fill. Now watching for a cross of the 20 DMA above the 50 DMA. (Small golden cross)
Wheat stocks are HOT due to the very sad situation in Ukraine. Our hearts go out to those affected by these atrocities.
“For WHEAT, the Manna IP helps naturally process and convert the grains into a flour that contains 30x more fiber, 3x more proteins and only 20% of the starch”
AgriFORCE (AGRI) Segment un(Think) Foods Brand Aims to Change the Way We Think About Food with Healthy Versions of the Ingredients We Avoid
Good day everyone,
The verticals I mentioned earlier at AgriFORCE Growing Systems, Ltd. (NASDAQ: AGRI) that already have contractual growth initiatives; consulting with an accretive acquisition pending, and the AgriFORCE Grow House with one under contract are likely to be the segments to first generate revenues.
But I want to focus today on their food business segment labeled AgriFORCE Brands as it represents a basic change in the foods we eat.
Current price $1.71/share
We are growing increasingly aware of what ingredients are in the foods we eat and learning to avoid foods, no matter how much we love them, that contain ingredients we don’t want or can not consume. Now comes un(Think) Foods, the AGRI brand that wants to make some of the food ingredients we abstain from good for us.
Earlier I mentioned that after acquiring agriculture IP in September from Manna Nutritional Group LLC (MNG), AGRI advised on February 10th that it’s is on track to pilot test its first branded product in the specialty flour category under the brand un(Think) Foods with businesses and consumers later this year. I believe branded products could be a successful vertical for AGRI. Recently (February 18th) the President of AgriFORCE Brands Mauro Pennella, engaged in a Q&A session. You can view the entire text here, but I wanted to offer excerpted highlights:
Q – The Manna IP sounds like a game changer when it comes to soft-baked products – tell us about why it’s so different from what is out there.
A – For wheat, the Manna IP helps naturally process and convert the grains into a flour that contains 30x more fiber, 3x more proteins and only 20% of the starch, and helps us recuperate a liquid high in nutrients and complex sugars, that we can also utilize for other beverage and food applications. The IP can be applied to the processing of all types of grains, or pulses (like peas) and root vegetables (like potatoes).
Q – This almost sounds too good to be true – soft baked goods with great taste, texture, and NO guilt … what’s the catch?
A – There is no catch. We can return to eating good food – baked products – with very good nutritional values. The foods that everyone enjoys – like breads, cookies, cakes and more – that often we deny ourselves because they don’t provide enough nutritional value.
Q – Tell us about the (un)Think brand – what does it mean/stand for?
A – (un)Think stands for changing the obvious. We want consumers to un(Think) what it means to eat nutritious food.
Q – When can consumers expect they will be able to get these products?
A – Our plan is to do a limited consumer release in a pilot test market toward the second half of 2022, then expand from there.
The company has estimated that their accretive acquisition of Delpy, combined with their contract for the AgriFORCE Grow House project in Barbados could contribute $15.7M in annual EBITDA. A portion of those projected earnings may come in FYE22 creating an enviable P/E ratio given the current share structure.
Considering all the potential catalysts we’ve discussed, an impressive IP portfolio, along with the pending accretive acquisition, AGRI looks like an undervalued company at the current $25M market cap.
Stay tuned for more on AGRI,
The Traders News Group
This week’s original reports below
The morning gap up has been filled! Looks to be consolidating for next move up…
A Company for the Betterment of Humanity
Accretive Acquisition Pending
AgriFORCE (AGRI) Is Exploiting an Impressive IP Portfolio with a Making Crops and The Foods We Eat Clean, Green and Better.
The AgriFORCE Growing Systems, Ltd. (NASDAQ: AGRI) intellectual property started out with a hydroponics focus to showcase its efficacy in a growing market. Now, they have expanded operations to broaden their technology and methodology for vegetables and fruit, as well as in the growing sector of nutraceutical and pharmaceutical therapeutics, including plant-based vaccines.
(NASDAQ: AGRI) One analyst is forecasting the company will break even within a few months and be profitable by 2022 year end. This is based on the pending acquisition and current contracts.
Additional analysis coming soon,
This mornings original analysis below
AgriFORCE (NASDAQ: AGRI) Smart Advanced AgTech IP, Accretive Acquisition Pending, Tiny Share Structure, and Catalysts Lining Up, Recent Contract Awards, Fast Growing Revenue Pipeline for 2022
AGRI Charts are Pointing Skyward, Let’s Go!
Hello and welcome to our new group members,
Your joining us at a great and exciting time as we evolve with our fast paced markets. There are opportunities out there that could make a real difference in peoples lives heading in to the second half of 2022!
According to Markets and Markets, the smart agriculture market is expected to grow from $12.9 billion in 2021 to $20.8 billion by 2026; it is expected to grow at a CAGR of 10.1% during that period. I want to talk about a small-cap player in the sector, AgriFORCE Growing Systems, Ltd. (NASDAQ: AGRI) that seems like it could be moving into a period of big near-term growth.
AGRI acquires intellectual property, patents and know how, building a portfolio to exploit by developing products. Current verticals in development are grow facilities, food/medicine products, and agricultural consulting. Visit the company’s investor deck for details on these developing verticals.
These are the potential near-term catalysts I see for AGRI:
Pending accretive acquisition set to close within sixty days
Deployment of an AgriFORCE GrowHouse under a five-year contract
Introduction of a new food product for H2 production
A newly published patent
Licensing of an environmental pathogen control device
AGRI shares spiked in October on news they intended to make an accretive acquisition in the European AgTech market. Two weeks ago, AGRI advised it has signed a definitive agreement to acquire Delphy Groep BV (Delphy), a Netherlands-based AgTech consultancy firm, with 2020 annual revenues of US $26 million and EBITDA of US $3 million. Delphy has two hundred employees and consultants, operating its AgTech consulting business in Europe, Asia, and Africa. Delphy anticipates 2021 revenue of US$28M.
I believe that the current struggle in the NASDAQ markets has kept investors from giving a proper look and response to AGRI based on the pending, transformative and accretive acquisition expected to close in April. The current market value of AGRI is $22M creating a potential price to sales ratio less than 1.0X after the acquisition. It is anticipated that Delphy will become a subsidiary of AgriFORCE.
FYE is December 31st
Last 10-Q filed was for Q3 21
Shares outstanding 15M
Shares in float 11.2M
Insiders hold 19.5% of the outstanding shares
52-week high $8.45/share, (hit $7.15/share on 10-27-21)
Current PPS $1.67
FYE22 looks like it may be the breakout year for AGRI as the acquisition of Delphy has the potential to generate immediate annual revenues of $26M and the deployment of the Barbados AgriFORCE GrowHouse (see below) is projected to generate $12.7M in EBITDA in year one of a five-year contract.
The product at the foundation of AGRI verticals is a precision ecosystem called the AgriFORCE GrowHouse, created using multiple AgriFORCE patents developed to make farm-fresh, pure, pesticide-free vegetables, fruits, and plant-based vaccine products.
Some features of the AgriFORCE GrowHouse:
- Integrated solution that harnesses the power of the sun
- Sealed positive pressure provides optimal temperature, humidity
- Automated grow technology and integrated artificial intelligence
- Design eliminates structural poles and beams, increasing the usable grow surface by up to 30%
- Precise and consistent growth cycles
- Reduced contamination and pest risk
- Allows higher crop yields with less space and efficient use of water
- Can be built and efficiently operated in virtually any climate or location
- Creates convenience due to proximity to markets, eliminating significant logistics costs
- Modular and scalable to meet demand drivers
In December AGRI signed a definitive contract with Humboldt Bliss, Ltd., an agriculture, and aquaculture business based in Barbados. The contract is for the deployment of the AgriFORCE foundational IP – which includes a proprietary facility design, production and operation technologies and methods, and an automated AgriFORCE Grow House. The initial contract is for a five-year-term, and the company believes this contract represents more than $63M in EBITDA over the initial term.
I’ve included this link to an informative video presentation with company CEO Ingo Mueller.
Recent events at AGRI:
Last week AGRI advised it entered into an exclusive worldwide licensing agreement with Radical Clean Solutions Ltd. (RCS), to commercialize their new proprietary hydroxyl generating devices within the controlled environment agriculture (CEA) and food manufacturing industries. The proprietary system seeks out and destroys airborne and surface-based mold, bacteria, viruses as well as Coronavirus and other pathogens in real-time. Hydroxyl technology is capable of destroying E. coli, Salmonella, as well as other bacteria and other pathogens that present risk to consumers.
On February 18th, AGRI advised their U.S. patent application entitled “Structures for Growing Plants” has been published by the U.S. Patent and Trademark Office. Upon publication of a patent application, entities are liable to the patent holder to pay “reasonable compensation” for activities that would have infringed the patent if it had been granted on the publication day.
The published patent application highlights innovative design elements of the GrowHouse structure and operational systems, which can allow for trans-missive panels that maximize the full light spectrum; Internet-of-Things (IoT) technologies, automation and use of artificial intelligence; enhanced insulation for maximizing energy efficiency; foam generators for temperature and ultraviolet light control; and a sealed positive pressure environment that provides optimal temperature, humidity, velocity, filtration, and sanitation of airflow.
After acquiring agriculture IP in September from Manna Nutritional Group LLC (MNG), AGRI advised on February 10th that they are on track to pilot test their first branded product in the specialty flour category under the brand un(Think) Foods with businesses and consumers later this year. Secondary tests on nutritional values of the food processing technology have shown strong results, with the flour providing over 30 times the fiber, 3 times the protein, and more than 80% less starch than conventional flour, without compromising taste, texture, and quality. Product production is scheduled to begin in H2 this year.
FYE22 looks like it may be the breakout year for AGRI with the potential catalysts above lining up and the accretive acquisition of Delphy set to immediately add to the company’s top and bottom line. AGRI is still trading considerably lower than their late October level of $7.15/share but that will no doubt change in the near-term.
Stay tuned I will have more on AGRI in a follow-up analysis very soon,
The Traders News Group