Why Is AgriFORCE Growing Systems (AGRI) Stock Up Today?

Today, one of the most impressive movers in the market is AgriFORCE (NASDAQ:AGRI). Investors in AGRI stock are currently up more than 150% in a wild trading session, which saw shares of this company more than triple at one point.

Tractor spraying pesticides on soybean field with sprayer
Source: Shutterstock

Indeed, the current macroeconomic environment seems conducive to such moves. Given the ongoing Russian invasion of Ukraine, agriculture stocks are surging. Expectations that the global supply chains for crops may be significantly disrupted are changing the supply-demand calculations for analysts and investors.

For a company like AgriFORCE, this is lifting shares.

AgriFORCE is an agricultural technology (AgTech) company focused on using its unique technology to bring various sustainable foods to market. Its goal of promoting clean, green and better foods certainly is one investors can get behind. Any sort of technological advantage for farmers seems like something worth exploring right now.

Until this global uncertainty dies down, AgTech companies such as AgriFORCE are likely to remain in focus. That said, there’s another catalyst for AGRI stock today that’s driving interest. Let’s dive into what investors are watching with this company right now.

Why Is AGRI Stock Surging Today?

AgriFORCE announced today that the company has signed a binding letter of intent to acquire one of the largest tissue culture propagation companies in the world.

This letter of intent stipulates a purchase price of $69 million for AgriFORCE to acquire Deroose, a leading lab and greenhouse provider of genetic intellectual property for plantation and food crops. Essentially, what this company focuses on is advancing sustainable cultivation in horticulture, plantation crops, and other fruits and vegetables. By acquiring Deroose, AgriFORCE expands its portfolio while acquiring more than 2 million square feet of laboratory and greenhouse facilities.

From simply a real estate standpoint, this deal seems to make sense. Essentially, the company is paying only $32 per square foot to acquire what appear to be some massive facilities. Additionally, the intellectual property that comes along with this deal appears enticing.

Investors seem to like how well this deal fits into AgriFORCE’s business model. The ability for the company to grow its high-value crops, bolster its IP portfolio, and obtain impressive facilities is attractive on its face. Accordingly, this will be an interesting stock to watch from here.

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On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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