AgriFORCE Growing Systems Ltd. (NasdaqCM : AGRI) has entered into a binding letter of intent to acquire a 70% stake in Berry People LLC for CAD 28 million.

AgriFORCE Growing Systems Ltd. (NasdaqCM : AGRI) has entered into a binding letter of intent to acquire a 70% stake in Berry People LLC for CAD 28 million on January 24, 2023. The purchase price of CAD 28 million consists of CAD 18.2 million in cash and CAD 9.8 million in AgriFORCE restricted shares. Berry People will have the opportunity for future earnouts during the five years after closing based on future revenue and EBITDA targets associated with agreed upon growth targets.

Berry People had unaudited net revenues of CAD 49.5 million for the year ended December 31, 2022. The deal is subject to completion of due diligence to the Company?s satisfaction and, after satisfactory due diligence, the reaching of agreement on the terms of the purchase pursuant to a definitive purchase agreement, including conditions precedent for closing of the transaction; the parties will sign the definitive purchase agreement no later than April 30, 2023, unless agreed to by both parties; and Berry People will not enter into any negotiations with other parties for a period of three months following the execution of the BP LOI. As of July 14, 2023, the parties have mutually agreed to extend the closing date until the end of August 2023, in order to allow both parties more time to complete certain closing conditions, including finalization of the Berry People audit.