Ag Tech News
Freight Farms, Inc., an Agtech Industry Pioneer of Modular CEA, and Agrinam Acquisition Corporation Execute a Business Combination Agreement
Freight Farms, Inc. and Agrinam Acquisition Corporation have signed a definitive agreement for a business combination with a pro forma market cap valuation for the combined entity of approximately US$147 million
Toronto and Boston – October 2023 – Agrinam Acquisition Corporation (TSX:AGRI.U) (“Agrinam”) and Freight Farms, Inc. (“Freight Farms”), a rapidly growing innovative agtech company and a leader in the global revolution for sustainable, hyper local and ultra-fresh food production, announced they have entered into a definitive business combination agreement (the “Definitive Agreement”) among Freight Farms, Agrinam and Agrinam Merger Sub, Inc., a wholly owned subsidiary of Agrinam (“Merger Sub”), which sets out the terms of a business combination whereby Agrinam will acquire all of the issued and outstanding shares of Freight Farms by way of a triangular merger (the “Business Combination”). Freight Farms and Agrinam previously announced that they had entered into a letter of intent in respect of the Business Combination on September 7, 2023. If consummated, it is anticipated that the Business Combination will constitute Agrinam’s qualifying acquisition under Part X of the Toronto Stock Exchange (“TSX”) Company Manual.
In connection with the Business Combination, Agrinam and Freight Farms have also agreed to use commercially reasonable efforts to complete a PIPE financing with certain strategic and financial investors at or prior to completion of the Business Combination (the “PIPE Financing”), whereunder Agrinam and Freight Farms intend to raise US$20 million net of transaction expenses from the existing Agrinam sponsor (Agrinam Investments, LLC) and certain strategic and financial investors, inclusive of funds in Agrinam’s escrow account at the time of closing of the Business Combination.
Freight Farms has established itself as a global leader in modular container farming technology with more than 600 farms sold worldwide. Its sales have been robust, which reinforces its strong growth trajectory, with US$23 million in revenue in 2022. Freight Farms’ flagship product, the Greenery™, delivers impressive results where you can grow the same amount of product as in a 2.5 acre open field farm and produce 1,000 heads of lettuce per week, all within a 40´ container. Freight Farms benefits from multiple revenue streams including modular farm sales, a subscription-based software platform, and consumables for diversified income. Freight Farms serves a wide range of clients, including small business farmers, corporations, schools, universities, municipalities, and nonprofits.