Press Release, Agtech's JV Partner City Farm Industries Signs MOU Agreement for Another $2.5m Investment
Newport Beach, California--(Newsfile Corp. - October 5, 2021) - Agtech Global International Inc.'s (OTC Pink: AGGL) (Agtech) (name change to Galexxy Holdings in process) Joint Venture partner, City Farm Industries (CFI), has signed an MOU dated September 29, 2021, for a $2.5 million Joint Venture investment with a private investor, to kick start its large-scale greenhouse Hemp CBD cultivation program on its 1600-acre leasehold property in the Central Valley of California.
This $2.5 million additional investment is on top of the $10 million staged capital investments planned by AGGL to expand the Agtech-CFI joint venture's production capacity of multi-span, climate-controlled greenhouses to 320,000 square feet, in 80,000 square feet "POD" configurations.
The investor and CFI will form another Joint Venture company, to be owned 75% by the investor and 25% by CFI. CFI will provide a sub-lease to the new joint venture to accommodate one large-scale POD comprising of eight greenhouses that will total 80,000 square feet. CFI shall provide the new joint venture with the first two greenhouses, that were recently received from China and investor shall assist in the installation for operations to commence as soon as possible. Investor will then place new greenhouse orders through CFI to increase CFI's capacity. The joint venture sub-lease shall be for 2 years unless mutually extended.
The new Joint Venture investment enables CFI's early development of an additional 80,000 square feet of greenhouse capacity that can produce 28,000 lbs of CBD flower per year with an expected market value of $8.4 million. Agtech holds the Option to acquire CFI.
Agtech's CEO, Ross Lyndon-James stated, "This new investment for CFI is complimented by Agtech's recently acquired Blockchain advanced operating system which provides the Agtech-CFI joint venture with the advantages of a fully encrypted CBD seed to sale tracking capability, necessary regulatory compliance and detailed supply chain controls."
Agtech Global International Inc. (to be known as Galexxy Holdings Inc.) is a soil to sale CBD manufacturer and online marketing company that is publicly traded on OTC Markets Pink (OTC: AGGL). Based in Newport Beach, California, the recent restructuring of Agtech has included a change of control and a name change. Agtech has applied to FINRA to approve the name change and obtain a new trading symbol.
Agtech Global International Inc.
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This press release contains "forward-looking information" and "forward-looking statements" (collectively, "statements"). All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this press release.