Globis Acquisition in an 8-K filing disclosed a subscription agreement that would provide up to $29.5 million in additional funding for its merger with Forafric, a vertically integrated agribusiness in North Africa. The funds consists of $20 million in additional PIPE financing and a $9.5 million convertible note.
The merger agreement values the combined enterprise at $300 million.
Forafric provides agribusiness lifecycle operations, from sourcing to processing, for sales and distribution of branded products.
As announced last month, terms of the deal call for Forafric to receive 15.1 million of the SPAC’s shares, plus up to $20 million of any remaining cash at closing. Earnout shares would also be awarded if certain stock price thesholds are met.
If approved, upon closing Globis will change its jurisdiction of incorporation to Gibraltar and Forafric Global PLC will become the first Moroccan-based company to list on a U.S. Exchange. Its common stock is expected to list on the Nasdaq under ticker symbol AFRI. Read more.
