Agrinam Acquisition Corporation has entered into a binding letter of intent (LOI) with Freight Farms, Inc., to accelerate the adoption of sustainable, hyper-local food production systems worldwide.
Founded in 2012, Freight Farms is an industry pioneer and global market leader of modular controlled environment agriculture with over 600 modular farms sold across 40 countries. To date, the company has raised over USD$43 million in external funding, which has allowed it to build a portfolio of intellectual property that is employed and operational in its 11th generation modular platform.
“We believe the potential business combination with an exceptional partner in Agrinam will enable us to more aggressively scale our business to deliver sustainable, hyper-local food production to more customers across the world,” said Rick Vanzura, CEO of Freight Farms. “Freight Farms has made significant progress over the past decade building an incredible technology platform with strong underlying economics. In addition, we’ve proven the efficacy of our model across a broad spectrum of customers and industries that is global in reach, with installations in 40 countries worldwide.”
The proposed business combination ascribes a pro forma enterprise valuation of approximately USD$147 million, based on certain assumptions. Under the terms of the LOI, Agrinam and Freight Farms would become a combined entity with existing Freight Farms’ shareholders exchanging 100 percent of their shares for equity in the combined public company.
Agrinam intends to announce additional details regarding the proposed business combination once a definitive agreement has been executed, which is anticipated to occur in the third quarter of 2023.
Read the JUNE/JULY 2023 issue of New AG International, free to view here.