AgriFORCE Completes Acquisition of Radical Clean Solutions

Rhea-AI Summary

AgriFORCE Growing Systems (NASDAQ: AGRI) has completed the acquisition of Radical Clean Solutions (RCS) assets, strengthening its IP portfolio with patent-pending hydroxyl technology. This technology eliminates pathogens in various settings without using toxic chemicals. The acquisition expands AgriFORCE's reach beyond agriculture into broader sustainable technology development.

Key points:

• RCS Hydroxyl Technology generates hydroxyl radicals for broad-spectrum disinfection
• Environmentally friendly and safe for people, pets, and plants
• Applicable in food production, healthcare, and commercial/consumer markets
• AgriFORCE previously held worldwide rights in agriculture and a 14% stake in RCS
• Roger Slotkin, RCS CEO, joins AgriFORCE as a consultant and President of RCS

Positive

• Acquisition of patent-pending hydroxyl technology for pathogen elimination
• Expansion into broader sustainable technology markets beyond agriculture
• Technology applicable in multiple industries including food production, healthcare, and commercial/consumer markets
• Environmentally friendly and safe disinfection solution
• Addition of RCS CEO Roger Slotkin as consultant and President of RCS division

Negative

• None.

Insights

Financial Analyst

The acquisition of Radical Clean Solutions (RCS) by AgriFORCE is a strategic move that could potentially expand the company's market reach and revenue streams. While the financial terms of the deal weren't disclosed, this acquisition strengthens AgriFORCE's intellectual property portfolio with a patent-pending technology. The RCS Hydroxyl Technology has applications beyond agriculture, including healthcare, commercial and consumer markets, which could significantly broaden AgriFORCE's addressable market.

However, investors should note that the impact on AgriFORCE's financials remains uncertain without specific revenue projections or acquisition costs. The company's pivot from a pure agriculture focus to a wider sustainable technology strategy represents a significant shift that carries both opportunities and risks. The success of this strategy will depend on effective commercialization and market penetration of the RCS technology across various sectors.

Tech Expert

The RCS Hydroxyl Technology represents a significant advancement in pathogen elimination. Its ability to generate hydroxyl radicals in controlled indoor environments offers a chemical-free alternative to traditional disinfection methods. This aligns well with growing consumer and industry demand for environmentally friendly solutions.

The technology's versatility across multiple applications - from agriculture to healthcare and residential use - is particularly noteworthy. However, the challenge lies in scaling up production and adapting the technology for diverse environments. AgriFORCE will need to invest in R&D to optimize the technology for different use cases and ensure it meets regulatory standards across various industries. The success of this acquisition will largely depend on AgriFORCE's ability to effectively commercialize and distribute this technology across different sectors.

Market Research Analyst

AgriFORCE's acquisition of RCS positions the company to tap into multiple high-growth markets. The global food safety testing market, valued at $19.5 billion in 2021, is projected to reach $33.4 billion by 2028. Similarly, the global disinfectant market is expected to grow from $23.7 billion in 2021 to $46.1 billion by 2026.

The RCS technology's eco-friendly nature aligns with increasing consumer and regulatory focus on sustainability, potentially giving AgriFORCE a competitive edge. However, the company will face stiff competition from established players in each target market. Success will hinge on effective marketing, competitive pricing and demonstrating clear advantages over existing solutions. The company's ability to leverage its agricultural expertise while expanding into new markets will be important for long-term growth.

Strategic acquisition strengthens IP portfolio with the addition of patent-pending technology proven to eliminate pathogens in food production and storage facilities and indoor farms, commercial and industrial applications, hospitals, schools, residential applications and more

VANCOUVER, British Columbia, Aug. 28, 2024 (GLOBE NEWSWIRE) -- AgriFORCE Growing Systems Ltd. (the “Company”) (NASDAQ: AGRI; AGRIW), an intellectual property (“IP”) focused technology company, announces the closing of the acquisition of the assets of Radical Clean Solutions Limited (“RCS”) for which the Company has held worldwide rights in the agriculture space.

The RCS Hydroxyl Technology generates and distributes hydroxyl radicals, highly reactive molecules that target and break down pathogens, virus, mold, volatile organic compounds, and other contaminants at an atomic level. Hydroxyl radicals, often referred to as “nature’s detergent,” exist naturally in the outdoor environment and are a key part of the natural cleaning process of the atmosphere. RCS has harnessed the power of hydroxyl radicals in a controlled indoor environment, allowing for the broad-spectrum disinfection and decontamination without the use of toxic chemicals. This technology is environmentally friendly and compatible with people, pets and plants. AgriFORCE previously acquired the worldwide rights to exclusively commercialize and distribute the RCS technology in controlled environment agriculture and food manufacturing and transport and subsequently invested a 14% stake in RCS in 2023.

Company CEO, Jolie Kahn, stated, “As food safety concerns continue to impact manufacturing and produce packing facilities worldwide, this acquisition strengthens our IP portfolio with a patent-pending technology proven to eliminate pathogens without the use of harmful chemicals. Additionally, the worldwide market for the RCS technology applies to hospitals, homes, schools, offices, people transport, and multiple other commercial and industrial applications. This transaction represents our go-forward strategy, allowing us to expand our reach beyond the agriculture sector into a wider sustainable technology development strategy that we believe will drive revenue progression and long-term shareholder value.”

Under the terms of the Agreement, the Company has also entered into a two-year consulting agreement with RCS Chief Executive Officer Roger Slotkin, who will be heading the development and manufacturing of the product line and servicing as President of RCS, commented, “We believe the tailwind created by AgriFORCE’s agricultural and CEA domain expertise, along with new access to capital and distribution initiatives RCS has already taken worldwide, will accelerate the commercialization of our technology across food production, healthcare, and both commercial and consumer markets. I look forward to working closely with management to implement a global distribution strategy.”

ABOUT AGRIFORCE
AgriFORCE Growing Systems Ltd. (NASDAQ: AGRI; AGRIW) is a technology development company focused on building an integrated platform that combines the best technology, intellectual property, and knowledge to solve urgent problems. Additional information about AgriFORCE is available at: www.agriforcegs.com.

Follow AgriFORCE on Twitter: @agriforcegs
Follow AgriFORCE on Facebook: AgriFORCE Growing Systems Ltd.
Connect with AgriFORCE on LinkedIn: AgriFORCE Growing Systems Ltd.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission and elsewhere. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release. This announcement is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities of the issuer. Any offer to sell or solicitation of an offer to buy securities of the issuer may only be made pursuant to a valid prospectus pursuant to an effective registration statement or pursuant to a valid exemption from registration under the Securities Act of 1933, as amended and the rules and regulations promulgated thereunder.

Investor Relations:

Richard Wong, CFO
rwong@agriforcegs.com

CORE IR
investorrelations@agriforcegs.com

FAQ

What technology did AgriFORCE (AGRI) acquire in the Radical Clean Solutions acquisition?

AgriFORCE acquired Radical Clean Solutions' patent-pending hydroxyl technology, which generates and distributes hydroxyl radicals to eliminate pathogens, viruses, mold, and other contaminants without using toxic chemicals.

How does the RCS Hydroxyl Technology acquired by AgriFORCE (AGRI) work?

The RCS Hydroxyl Technology generates hydroxyl radicals, highly reactive molecules that break down pathogens and contaminants at an atomic level. It mimics nature's atmospheric cleaning process in a controlled indoor environment.

What markets can AgriFORCE (AGRI) target with the newly acquired RCS technology?

AgriFORCE can target multiple markets with the RCS technology, including food production and storage facilities, indoor farms, hospitals, schools, residential applications, and various commercial and industrial settings.

How does the Radical Clean Solutions acquisition align with AgriFORCE's (AGRI) strategy?

The acquisition aligns with AgriFORCE's strategy to expand beyond agriculture into broader sustainable technology development, potentially driving revenue progression and long-term shareholder value.