Controlled Environment Agriculture Mergers & Acquisitions Stock Market

Agrinam Acquisition Corporation Announces Business Combination with Freight Farms

Agrinam Acquisition Corporation Announces Business Combination with Freight Farms

In a significant development for the agriculture technology (agtech) sector, Agrinam Acquisition Corporation has entered into a binding letter of intent (“LOI”) with Freight Farms, Inc. The proposed business combination aims to accelerate the adoption of sustainable, hyper-local food production systems worldwide.

About Freight Farms

Founded in 2012, Freight Farms has become a global leader in modular controlled environment agriculture. With over 600 modular farms sold across 40 countries, the company has a diverse client portfolio, including for-profit farmers, educational institutions, healthcare providers, and non-profit organizations. Freight Farms has raised over $43 million in external funding, enabling it to develop its 11th-generation modular platform.

Key Offerings

  • The Greenery™ S is a closed-loop hydroponic container farm offering turnkey precision growing. It promises a return on investment (ROI) comparable to a typical retail franchise model.
  • Farmhand®: A proprietary automation software that optimizes performance and crop yield through real-time and historical data analytics.
  • Farmhand Shop: A one-stop solution for farming needs, including supplies, nutrients, and seeds.

Management Commentary

Rick Vanzura, CEO of Freight Farms, expressed enthusiasm about the partnership, stating that it aligns with its mission and values of sustainability and efficient resource use. Agustin Tristan Aldave, CEO of Agrinam, echoed these sentiments, highlighting the scalability and sustainability of Freight Farms’ platform.

Transaction Overview

The proposed business combination values the vertical farming company at approximately $147 million. Existing Freight Farms shareholders will exchange 100% of their shares for equity in the combined public company. Agrinam also targets non-binding investment indications of approximately $20 million from existing sponsors and strategic investors.

Future Prospects

The deal is expected to be finalized in the third quarter of 2023, subject to due diligence, regulatory approvals, and shareholder approval from both companies. If successful, this business combination could set a new standard for sustainable agriculture, addressing global challenges such as climate change, water scarcity, and food insecurity.

Image provided by Freight Farms

%d bloggers like this: