Shares of AgriFORCE Growing Systems Ltd (NASDAQ: AGRI) pulled back a bit after gaining momentum recently.
Trading Data
On Friday, AGRI stock fell 8% to $3.15 with more than 17.45 million shares, compared to its average volume of 5.10 million shares. The stock moved within a range of $2.7801 – 3.4350 after opening trade at $3.02 .
AgriFORCE Growing Systems Enters into Binding LOI to Acquire Tissue Culture Propagation Company, Deroose Plants NV
AgriFORCE Growing Systems Ltd (NASDAQ: AGRI) has entered into a binding letter of intent (LOI) to acquire Deroose Plants NV, which is one of the biggest tissue culture propagation companies in the world with a leadership position in horticulture, plantation crops, and fruit and vegetables.
The binding LOI is subject to completion of standard due diligence and entry into a definitive purchase agreement, which will include commercially standard terms and conditions. These include, but aren’t limited to representations and warranties, covenants, events of default and conditions to closing.
The AgriFORCE acquisition of Deroose, will strengthen the former’s integrated AgTech business model by positioning it as a leader in tissue culture propagation and plant cultivation, including a lucrative IP portfolio, targeted at delivering increased crop yields with a reduced environmental footprint. AgriFORCE and Deroose, together are set to drive further growth in core markets for developing and trading of horticulture, plantation crops, and fruits and vegetables. Deroose’s IP will surely improve, which should drive improved genetics and higher yields.
The acquisition also builds on Deroose’s solid financial performance and steady growth in several locations all over the world. Both companies have planned for major expansion into new and high value crops, and thus ensure consistent growth.
Technical Data
AGRI stock is trading above the 20-Day and 50-Day Moving averages of $1.96 and $1.72 respectively. Moreover, the stock is trading above the 200-Day moving average of $2.29.
