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REGINA, Saskatchewan - Above Food Ingredients Inc. (NASDAQ: ABVE), a micro-cap company currently valued at $15.4 million and known for its sustainable food systems, announced its intention to acquire Palm Global Technologies Ltd., a company specializing in agri-tech, FinTech, and carbon credit securitization. The Letter of Intent (LOI) signifies a strategic move for Above Food to enhance its global reach in transformative sectors. According to InvestingPro data, ABVE’s stock has experienced significant volatility, falling nearly 95% over the past year.
The acquisition, valued at approximately $180 million, is expected to close swiftly following definitive agreements set for February 2025. This ambitious move comes as Above Food faces financial challenges, with InvestingPro data showing a current ratio of 0.44, indicating potential liquidity concerns. Peter Knez, Chairman and CEO of Palm Global, will assume the same roles in the combined entity, while Lionel Kambeitz will continue as an Executive Director and Jason Zhao as CFO.
Palm Global leverages AI, blockchain, and decentralized finance technologies to empower tens of millions of farmers across Africa, Southeast Asia, and the Americas. Its partnerships with global organizations and governments aim to drive economic empowerment and sustainable growth. Palm Global’s board and advisory board members, including industry luminaries and dignitaries, contribute to its influence in the agri-tech and sustainability sectors.
Above Food aims to integrate Palm Global’s technologies and global partnerships to bolster its research and development in agronomy and genomics. This integration is set to enable initiatives like regenerative agriculture and grow-to-order food systems, aiming to strengthen global food security and adapt to consumer and agricultural needs.
The planned acquisition is part of Above Food’s broader vision to deliver nutritious foods with traceability and sustainability. The company’s products are available online and in grocers across Canada and the United States.
This news is based on a press release statement. The forward-looking information in the press release is subject to various risks, including the possibility that the anticipated benefits of the acquisition may not materialize. With an EBITDA of -$27.35 million in the last twelve months and negative profit margins, investors should carefully consider the company’s financial position. Subscribers to InvestingPro can access 8 additional key insights and comprehensive financial metrics to better evaluate this investment opportunity. Investors and security holders are advised to read the documents filed with the SEC for more detailed information.
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