Forafric to become the first Moroccan company to be listed in the United States

In the beginning, a Moroccan company, Forafric, which has become Pan-African in recent years and a leader in the flour milling industry.

On the other, an American company listed on the Nasdaq, Globis.

Globis is a “SPAC” (special purpose acquisition companies), which corresponds to a new concept in Western stock exchanges. PSPC, also known as “blank check companies”. These are companies that raise money on the stock market but without having a specific activity. They raise funds and then look for targets. Globis searched and then targeted Forafric.

Several months ago, talks between the two parties began and a merger agreement was reached. This agreement is obviously suspended from the authorizations of the American anti-trust authorities. When this is done, in several weeks, Forafric will therefore be the first Moroccan company listed in the United States.

The new group will benefit from these funds already raised in New York by Globis, to finance its growth in Africa and around the world.

Forafric is a fast growing, vertically integrated and scalable pan-African platform. It responds to a large market and an unmet need for food security. It will become the first African agri-food company to be listed on an American stock exchange.

The combined value of the new Globis Acquisition Corp. (Nasdaq: GLAQ) and Forafric is around $ 300 million.

Upon closing of the transaction, the parties plan that Globis will change its jurisdiction of incorporation to Gibraltar, be renamed Forafric Global PLC and become the first Morocco-based company to be listed on an American stock exchange. Its common stock is expected to be listed on the Nasdaq under the symbol “AFRI”.

Pan-African growth strategy and regional market consolidation

Forafric is at the forefront of strengthening food systems to serve Africa’s growing population and urbanization, and tackle food insecurity and undernourishment, a statement issued in New York said.

The company focuses on the productivity and diversification of food production, reducing pre- and post-harvest losses, and adopting efficient and sustainable agricultural, financial and trade policies. Forafric represents more than 10% of the total market share in Morocco, and maintains one of the largest industrial, logistic and commercial footprints of the second most populous continent in the world.

Forafric’s capacities include 250,000 tonnes of storage capacity, seven production units and 2,200 tonnes per day of crushing capacity. The company also owns two leading brands, Choose and MayMouna, and maintains distribution in 45 countries. Forafric manages each step of the value chain, starting with the sourcing of raw materials and ending with a consumer brand in each household.

At the start of 2021, Forafric launched its acquisition strategy by acquiring grinding capacities in Mali, Burkina Faso and Niger. The success of this company will be facilitated by the improved economies of a large firm compared to smaller competitors with declining market share who depend on state subsidies, as well as mid-sized players facing challenges. governance and transition issues.

Saad Bendidi, President of Forafric, declared: “We are proud to be the first Moroccan and African agro-industrial company to be listed on an American stock exchange. We don’t see a better value accelerator than pairing a public market listing with a successful operating history. The business combination provides our company with additional capital to advance our strategic and operational initiatives, while the public listing will give us increased visibility with our clients, partners and potential investors ”.

Quoted in the press release, Mr. Bendidi continued: “Today’s announcement is an important milestone for Forafric. We are delighted to partner with Paul Packer and the Globis team, who bring extensive expertise and strategic relationships in capital markets. Morocco is our ‘gateway’ to Africa, providing an excellent starting point for expansion and consolidation, improving our scale to generate sustained profitability and the deployment of improved security of supply in processed grains ”.

Paul Packer, CEO of Globis, commented: “We are extremely pleased to partner with Forafric to create significant shareholder value, using Forafric’s long history to meet a significant and growing need to bring security food and sustainability in a large and under-capitalized market ”.

The transaction was unanimously approved by the Board of Directors of Globis and the independent members of the Board of Directors of Forafric. It is subject to the approval of the shareholders of Globis and the owners of Forafric, as well as other customary closing conditions, including any applicable regulatory approval.

Existing Globis shareholders who do not exercise their repurchase rights will redistribute 100% of their equity in the combined company.

R. B.

December 20, 2021 at 1:33 p.m.

Modified December 20, 2021 at 3:17 p.m.

Leave a Reply

Your email address will not be published.

This site uses Akismet to reduce spam. Learn how your comment data is processed.