Forafric Announces Plan to Expand with Lease of New Operating Facility; Expects to Increase Crushing Capacity by 600 Tons per Day

10-year renewable agreement to lease and operate existing milling facility

Forafric Global PLC (NASDAQ:AFRI, or "Forafric"))), a vertically integrated agribusiness serving Africa, today announced it has entered into a 10-year renewable contract to lease and operate an existing milling facility located in the Meknes-Fes region of Morocco. This marks a significant milestone in the expansion of the Company's milling capabilities and positions Forafric for continued growth.

This expansion is expected to increase the Company's milling capacity by approximately 470 tons of soft wheat and 130 tons of durum per day for an aggregate increase in total production of approximately 600 tons per day.

"This new contract will enable us to expand our operational footprint and crushing capacity rapidly with low capital investment," said Saad Bendidi, Chairman of Forafric. "Central to the selection of this facility was its location and state-of-the-art equipment. Furthermore, we believe we can better optimize the operations given the strength of our business and add additional value given our proven capabilities."

The contract is subject to regulatory approvals and other customary closing conditions. The Company expects to transition operations to Forafric in the third quarter of 2024.

About Forafric

Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is the milling industry leader with a complete range of flour and semolina, and secondary processing products such as pasta and couscous. The Group operates 12 industrial units, and 2 logistics platforms. Forafric exports its products to more than 45 countries around the world. Forafric intends to continue expanding both in Morocco and in Africa and contributing to growing Africa food security.

Forward-Looking Statement

This press release includes forward-looking statements that involve risks and uncertainties. Forward-looking statements are statements that are not historical facts. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ from the forward-looking statements. The Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based, except as required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240506694638/en/