VANCOUVER - AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI), an intellectual property-focused technology company, has announced the acquisition of Radical Clean Solutions (RCS), aiming to diversify into new markets with RCS's patent-pending hydroxyl technology. This acquisition is expected to enhance AgriFORCE's portfolio by providing environmentally friendly solutions for eliminating pathogens, molds, viruses, and volatile organic compounds in contained environments without harmful chemicals.
The RCS Hydroxyl Technology generates hydroxyl radicals, which are highly reactive molecules that naturally occur in the outdoor environment and play a role in atmospheric cleaning. These radicals effectively break down various contaminants at an atomic level. With this technology, AgriFORCE aims to address the needs of multiple industries, including healthcare, education, commercial business, storage facilities, and hospitality.
Roger Slotkin, founder and president of AgriFORCE's RCS division, highlighted the technology's adaptability to various markets and verticals, emphasizing its potential impact on public health and safety. The technology's initial application in agriculture and food storage has already shown promise in extending the life of produce by combating natural degradation.
Jolie Kahn, CEO of AgriFORCE, underscored the significance of the RCS technology for investors, noting its potential for neutralizing pathogens in contained environments across diverse industries. The company is actively pursuing additional applications for the technology and is keeping stakeholders informed about the commercialization progress.
AgriFORCE offers different types of RCS units, including in-duct, portable, trailers, transport, and wall mount units, to provide customers with flexible solutions tailored to their specific needs. The company's broader mission is to build long-term shareholder value through the commercialization of this technology and the pursuit of complementary technology opportunities.
This strategic move is part of AgriFORCE's vision to be a global leader in delivering plant-based foods and products through an advanced and sustainable AgTech platform. The information is based on a press release statement from AgriFORCE Growing Systems Ltd.
In other recent news, AgriForce Growing Systems Ltd. has entered a new equity distribution agreement with Maxim (NASDAQ:MXIM) Group LLC, which replaces the previous agreement with B. Riley, Inc. The deal allows AgriForce to sell common stock up to $3.08 million through Maxim. The timing and amount of any sales will be determined by various factors at the company's discretion, with the proceeds expected to be used for general corporate purposes. The agreement also includes a commission to Maxim Group LLC for their role in the transaction.
In addition to this development, AgriForce has announced new compensation arrangements for key executives. According to a recent SEC filing, Chairman David Welch will receive an annual cash compensation of $45,000, plus restricted stock units (RSUs) valued at $50,000 for each successful acquisition or joint venture transaction, effective July 1, 2024. CEO Jolie Kahn's annual cash salary will be set at $220,000, with additional sums accruing quarterly and an equivalent amount in RSUs awarded annually, starting June 4, 2024. Both executives may also be considered for bonuses and other forms of compensation by the company's Compensation Committee.
InvestingPro Insights
Amidst the strategic acquisition of Radical Clean Solutions, AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI) is navigating the market with certain financial metrics that investors may find noteworthy. With a market capitalization of just $5.31 million, the company reflects a relatively small valuation in the industry. According to InvestingPro, AGRI is trading at a low Price / Book multiple of 0.47 as of the last twelve months leading up to Q2 2024, suggesting that the stock might be undervalued relative to its assets.
InvestingPro Tips indicate that AGRI holds more cash than debt on its balance sheet, which can be a positive sign for investors looking for companies with a solid financial foundation. Additionally, analysts expect sales growth in the current year, which may bode well for future revenue streams and the company's ability to capitalize on its acquisition of RCS. It's also important to note that AGRI does not pay a dividend, which might influence the investment decision for income-focused investors.
While AGRI's gross profit margin appears challenging at -48.93% for the same period, the company's liquid assets exceed its short-term obligations, which could provide some financial flexibility in the near term. For a more comprehensive analysis, including additional InvestingPro Tips on AGRI, investors can explore the insights available at https://www.investing.com/pro/AGRI, where 17 additional tips are listed to aid in investment decisions.
As AgriFORCE continues to expand its technology portfolio and explores new market opportunities, these financial metrics and expert tips can help investors gauge the company's current standing and future potential.
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