Forafric Announces Plan to Expand with Lease of New Operating Facility; Expects to Increase Crushing Capacity by 600 Tons per Day

Rhea-AI Summary

Forafric Global PLC (Nasdaq: AFRI) announced a 10-year renewable lease agreement to operate a milling facility in Morocco, expecting to increase crushing capacity by 600 tons per day. The expansion will boost milling capabilities by 470 tons of soft wheat and 130 tons of durum, positioning the company for growth with low capital investment. Saad Bendidi, Chairman of Forafric, highlighted the strategic location and equipment quality of the facility, aiming to optimize operations and add value. Transition to Forafric's operations is projected for the third quarter of 2024.

Positive

• 10-year renewable lease agreement to operate a milling facility in Morocco will increase Forafric's crushing capacity by 600 tons per day.

• Expansion of milling capabilities by 470 tons of soft wheat and 130 tons of durum per day will position the company for continued growth.

• Low capital investment required for the expansion, enabling rapid operational footprint and capacity growth.

• Strategic selection of the facility based on location and state-of-the-art equipment to optimize operations.

• Transition to Forafric's operations expected in the third quarter of 2024, subject to regulatory approvals and closing conditions.

Negative

• None.

10-year renewable agreement to lease and operate existing milling facility

CASABLANCA, Morocco--(BUSINESS WIRE)-- Forafric Global PLC (Nasdaq: AFRI, or “Forafric”), a vertically integrated agribusiness serving Africa, today announced it has entered into a 10-year renewable contract to lease and operate an existing milling facility located in the Meknes-Fes region of Morocco. This marks a significant milestone in the expansion of the Company’s milling capabilities and positions Forafric for continued growth.

This expansion is expected to increase the Company’s milling capacity by approximately 470 tons of soft wheat and 130 tons of durum per day for an aggregate increase in total production of approximately 600 tons per day.

“This new contract will enable us to expand our operational footprint and crushing capacity rapidly with low capital investment,” said Saad Bendidi, Chairman of Forafric. “Central to the selection of this facility was its location and state-of-the-art equipment. Furthermore, we believe we can better optimize the operations given the strength of our business and add additional value given our proven capabilities.”

The contract is subject to regulatory approvals and other customary closing conditions. The Company expects to transition operations to Forafric in the third quarter of 2024.

About Forafric

Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is the milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The Group operates 12 industrial units, and 2 logistics platforms. Forafric exports its products to more than 45 countries around the world. Forafric intends to continue expanding both in Morocco and in Africa and contributing to growing Africa food security.

Forward-Looking Statement

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240506694638/en/

Hayden IR

Brett Maas

(646) 536-7331

brett@haydenir.com

Source: Forafric Global PLC

FAQ

What expansion plan did Forafric Global PLC announce?

Forafric announced a plan to expand by leasing and operating an existing milling facility in Morocco, aiming to increase crushing capacity by 600 tons per day.

What company symbol represents Forafric Global PLC on Nasdaq?

Forafric Global PLC is represented by the stock symbol AFRI on Nasdaq.

When is the transition to Forafric's operations expected?

The transition to Forafric's operations is anticipated in the third quarter of 2024.

Where is the new milling facility located?

The new milling facility is located in the Meknes-Fes region of Morocco.

Who is the Chairman of Forafric Global PLC?

Saad Bendidi is the Chairman of Forafric Global PLC.