Source : investing, 13/11/2024, Wednesday
VANCOUVER – AgriFORCE Growing Systems Ltd (NASDAQ: AGRI), an intellectual property-focused technology company, has signed a letter of intent to acquire a Bitcoin mining facility in Alberta, Canada. The facility has a capacity of 1.2 MW and uses sustainable energy sources.
The facility operates using energy generated from retained flaming gas, with an estimated energy cost of four Canadian cents per kilowatt hour. This is in line with AgriFORCE’s strategic shift towards sustainable technology initiatives, CEO Julie Kahn said. Kahn underscored the company’s commitment to creating long-term shareholder value and its transition to integrating Bitcoin mining solutions.
The acquisition is part of AgriFORCE’s broader strategy to leverage Bitcoin and other cryptocurrencies to promote sustainable financial transactions. The company plans to allocate 10-20% of the future capital raised to buy and hold Bitcoin. Kahn also noted the facility’s potential to generate instant cash flow for the company.
AgriFORCE intends to apply its own on-site technology to capture carbon emissions. This initiative is expected to decarbonize processes and use them in sustainable agriculture.
which could lead to added value through carbon offsets, credits and agricultural production.
The transaction is expected to close in the coming weeks.
and the company aims to provide further updates on this project and other future activities.
The information in this article is based on a press release from AgriFORCE Growing Systems Ltd.
In other recent news, AgriFORCE Growing Systems Ltd completed the sale of shares to institutional investors, selling sixteen million shares at $0.05 per share.
generating a total return of $800,000. The company also amended its corporate charter, reducing the quorum to one-third of the issued and outstanding shares for shareholders’ meetings.
after rescheduling its annual shareholders’ meeting due to lack of quorum. AgriFORCE expanded Reach to the market through the acquisition of Radical Clean Solutions (RCS) and the integration of its patent-pending hydroxyl technology.
Furthermore, AgriFORCE entered into a new share distribution agreement with Maxim Group LLC.
allowing the company to sell ordinary shares worth up to $3.08 million. The proceeds of this agreement are expected to be used for general corporate purposes.
Finally, AgriFORCE announced new compensation arrangements for Chairman David Welch and CEO Julie Kahn. Welch will receive an annual cash compensation of $45,000, plus $50,000 in restricted stock units for each successful acquisition or joint venture. Cannes’ annual cash salary will be set at $220,000.
with additional amounts accumulating quarterly and an equivalent amount in restricted equity units awarded annually. These are the latest developments of AgriFORCE.
With AgriFORCE Growing Systems Ltd (NASDAQ: AGRI) entering the Bitcoin mining space.
investors should consider some key financial metrics and insights from Investing Pro. The company’s market capitalization is $5.56 million, reflecting its current position as a small player in this new field.
Investing Pro data reveals that AGRI revenue for the past twelve months through the second quarter of 2024 was $0.06 million, indicating a relatively small operating range. This context is essential when assessing the potential impact of a new Bitcoin mining facility on the company’s financial position.
Two Related Tips from Investing Pro Highlight AGRI’s Financial Situation
- The company holds more cash than debt on its balance sheet, which could provide flexibility as it expands into Bitcoin mining.
- AGRI trades at a low P/C multiplier, which may indicate a relatively low valuation of its assets.
These insights suggest that while AGRI is making a strategic move towards cryptocurrencies.
it is doing so from a position of relative financial stability, albeit with a small revenue base. A low price-to-book multiplier may be particularly interesting for value-seeking investors thinking about the company’s new direction.
Investing Pro offers 16 additional tips for AGRI, providing a more comprehensive analysis for investors interested in this evolving story. As the company transitions to sustainable Bitcoin mining, these insights may prove valuable in assessing its future prospects.
