AgriFORCE Growing Systems ltd (AVX)

A. Company Overview

AgriFORCE Growing Systems Ltd. is an Ag-Tech company incorporated on December 22, 2017, under the Business Corporations Act of British Columbia, Canada. Its registered office is located at 800 – 525 West 8th Avenue, Vancouver, British Columbia, V5Z 1C6. The company primarily focuses on developing and applying intellectual property (IP) to advance the agricultural industry, notably through two key divisions: AgriFORCE Brands and AgriFORCE Solutions. The company's vision involves enhancing agricultural technologies, addressing Environmental, Social, and Governance (ESG) aspects, and leveraging artificial intelligence (AI) and blockchain technology.

B. Business Focus and Divisions

AgriFORCE Brands

The AgriFORCE Brands division aims to develop and commercialize innovative plant-based ingredients and products. A notable product under this division is the Awakened Flour™, which utilizes proprietary IP acquired from Manna Nutritional Group, LLC. This patented process allows for the conversion of grain, pulses, and root vegetables into high-protein, fiber-rich, low-starch flours and sweeteners, thus addressing nutritional deficiencies in modern diets. The company aims to market its products to both businesses and consumers, establishing a robust supply chain and sales channels, including online direct sales.

AgriFORCE Solutions

The AgriFORCE Solutions division is dedicated to modernizing agriculture through controlled environment agriculture (CEA) systems. Its flagship product, FORCEGH+™, aims to address common agricultural challenges, such as water conservation and high energy use. This patented solution combines advanced facility design with automated growing systems, limiting human intervention and enabling superior quality control.

C. Technological Innovations

AgriFORCE employs cutting-edge technologies such as AI and blockchain to enhance agricultural practices. Artificial intelligence optimizes growing processes and operational efficiencies, while blockchain facilitates improved financial transactions for farmers. The FORCEGH+ design allows for cultivation in diverse environmental conditions, optimizing crop yields while minimizing pesticide use.

D. Intellectual Property

The company safeguards its innovations through a combination of patents, trademarks, and proprietary agreements. The core patented process, the Controlled Enzymatic Reaction & Endothermic Saccharification with Managed Natural Germination (CERES-MNG), yields flours that are nutritionally superior to traditional counterparts, significantly enhancing fiber and protein content while reducing net carbohydrates.

E. Market Potential

The company identifies a clear opportunity in the health-focussed food market, as public awareness regarding nutrition and health risks related to processed foods grows. Its UN(THINK)™ foods brand targets an audience seeking healthier dietary options through specialized products that improve nutritional profiles. The rapid commercialization of these products aims to capture a percentage share of an expanding category in the health food market.

F. Growth Strategy

AgriFORCE has outlined a phased growth plan characterized by active commercialization and expansion into various markets, including the USA, Canada, Latin America, and Asia. This strategy involves establishing production hubs to minimize logistics costs and leveraging partnerships for supply chain efficiency. The company has plans to develop prototypes and conduct consumer testing to refine its product offerings and further innovate in the realm of plant-based ingredients.

G. Clean Solutions Division

AgriFORCE’s Solutions division also aims to commercialize hydroxyl generating devices through a partnership with Radical Clean Solutions, Inc. This technology purports to eliminate pathogens and impurities from the agricultural and food manufacturing sectors. Focusing on distribution agreements in various regions, the company is poised to expand its market reach in both the CEA and food manufacturing industries.

H. Corporate Structure

AgriFORCE maintains several wholly-owned subsidiaries to manage various aspects of its business, including investments in the United States and the manufacturing of food products in Canada and the USA. This structure supports its overarching goal of innovation and market expansion in the Ag-Tech sector.

I. Management and Operational Developments

In 2023, AgriFORCE underwent significant management restructuring, appointing key personnel to oversee its operational growth and innovation efforts. The company’s current workforce includes seven employees and three contractors, with further recruitment anticipated to support its expansion plans.

J. Financing Activities

AgriFORCE has engaged in multiple financing rounds to support its operations. Recent convertible debentures were issued to capitalize on growth opportunities, reflecting the company's strategic focus on resource allocation and potential mergers and acquisitions in the Ag-Tech landscape.