Forafric, a leading Moroccan company sourcing, processing, selling and distributing agricultural commodities, is set to list on a U.S. exchange after signing a strategic merger with Globis Acquisition Corp.
Touted as a leading miller in Morroco, Forafric is a diversified agricultural company that has been at the forefront of combating food insecurity in Africa. It offers commercial, logistics and industrial activities on the continent and currently controls more than 10-percent of the total market share in Morocco.
Forafric owns two leading brands, Tria and MayMouna, and has a storage capacity of 250,000 tonnes, seven production units and a 2,200-tonne-per-day crushing capacity.
It also boasts an export network spanning 45 countries.
Globis Acquisition Corp. is a Nasdaq-listed firm established to reorganize businesses, effect mergers, share purchases and other allied businesses.
Upon the completion of the merger, Globis is expected to change its jurisdiction of incorporation to Gibraltar and to rename itself Forafric Global Plc, paving the way for it to become the first African agribusiness company and first Morocco-based company to list on a U.S. exchange.
The company will be registered with the ticker, “AFRI.”
According to Stock House, the value of the merger is estimated at $300 million. The deal is expected to help drive Forafric’s expansion across the continent.
Commenting on the development, Forafric Chairman Saad Bendidi said: “We are proud to be the first-ever Moroccan based company and African agribusiness to come public on a U.S. exchange. We see no better accelerator of value than coupling a public market listing with our long and successful operating history. The business combination provides our company with additional capital to advance our strategic and operational initiatives, while the public listing will provide us with enhanced visibility with our customers, partners, and potential investors.”
Chardan has acted as the financial advisor of the deal, while Cohen Tauber Spievack & Wagner P.C. and McDermott Will & Emery LLP have acted as legal advisers to Forafric and Globis, respectively.
