Further to Affinor Growers Inc.’s news release dated Feb. 10, 2023, it has entered into an agriculture technology agreement dated June 16, 2023, with Freshbay Inc.
Nick Brusatore, chief executive officer of the company, stated: “We are extremely excited about the sustainable infrastructure and the economics that surround this project with Freshbay. Further, we are enthusiastic about the amazing quality of strawberry ‘Affinoria Fragaria’ that will be produced utilizing the sunshine, cold dry air and an abundance of glacier water that the Province of Alberta has to offer.”
Freshbay currently intends to build a geothermal agricultural site to comprise approximately 864,000 square feet of greenhouse facilities located in Hinton, Alta. (the project site). Pursuant to the terms and conditions of the definitive agreement, Freshbay has engaged the company to provide certain products and services for use at the project site to support Freshbay in its production and commercialization of strawberries. More specifically, the company will:
- Supply and arrange for the installation of 17,530 vertical hydroponic towers with self-pollinating capabilities at the project site;
- Supply and arrange for the installation of 34 polycarbonate Atlantis greenhouses at the project site;
- Install or arrange for the installation of its automated irrigation and fertilization system (together with the towers and greenhouses, the “equipment”) for strawberry production using the greenhouses and the towers at the project site;
- Arrange for the initial introduction between Freshbay and Berrymobile Fruit Distribution Inc. to explore the purchase of strawberries grown at the project site (the offtake products);
- Grant Freshbay certain licences to use certain trademarks, intellectual property and standard operating procedures of the company.
As consideration for the products and services to be provided by the company, and in accordance with the terms and conditions of the definitive agreement, Freshbay has agreed to pay the company an aggregate payment of $135,757,350 (the contract price). Prior to paying any portion of the contract price, it is a condition precedent that (a) Freshbay obtain adequate financing to pay the contract price, and (b) the parties agree to a work schedule for the project. Assuming the conditions precedent are satisfied, $20-million of the contract price will be payable within two business days of the satisfaction of the conditions precedent, and $47,878,675 will be payable on the date that is 30 days thereafter. The remaining portion of the contract price is payable in instalments based on the delivery of the equipment at the project site.
About Affinor Growers Inc.
Affinor is a publicly traded company listed on the Canadian Securities Exchange under the symbol AFI and on the OTCQB under the symbol RSSFF. Affinor is focused on developing vertical farming technologies and using those technologies to grow fruits and vegetables in a sustainable manner.
To learn more about Affinor, visit: https://www.affinorgrowers.com
On behalf of the Board of Directors,
Affinor Growers Inc.