AgriFORCE Growing Systems announced the signing of a Memorandum of Understanding with Humboldt Bliss, an agriculture and aquaculture business based in Barbados, West Indies. Pursuant to the MOU, the parties plan to deploy AgriFORCE’s foundational intellectual property – including a proprietary facility design, production and operation technologies, and automated growing system, AgriFORCE Grow House, for the cultivation and sale of high value medical and agricultural products into the Caribbean and global pharmaceutical and agriculture markets.
Under the terms of the MOU, it is anticipated that AgriFORCE will be responsible for the construction and providing the full Standard Operating Procedures of the AgriFORCE Grow House, while Humboldt will be responsible for securing the project’s land and facilities operations. Upon production, Humboldt has committed to remit a licensing and equipment leasing fee to AgriFORCE equal to a slight discount to a commercial index for a minimum of 14,300 pounds of high value medical and agricultural products per year. As an example, given a current index price of approximately $1,900 per pound with a 10% discount, a 14,300 pound annual minimum could potentially yield annual gross revenue of $24,500,000.1 The initial contract would be for a minimum 5-year term. The contract would be backed by a rolling $5 million quarterly performance bond maintained by Humboldt.
Commenting on the MOU, AgriFORCE’s CEO Ingo Mueller stated, “Barbados is an exceptional opportunity to showcase our technology with the country’s challenging tropical climate, as well as the limestone rich soil conditions found on the island. In turn, we believe this will add high-paying and technical jobs to the Barbadian economy and contribute significant cash flow and robust economic opportunities to AgriFORCE.”
The MOU is subject to execution of definitive documentation acceptable to both parties. The intent of both parties is to identify a property within 90 days and enter into a Definitive Agreement within 120 days of the date of the MOU.
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