Vancouver, British Columbia – TheNewswire – June 25, 2024 — AgriTechProperties Limited (Formerly 1325966 BC Ltd.”AgriTech” or the “Company”) is pleased to announce an agreement between AgriTech and Stephen and Ginger Knapp and Knapp Farms Operating, Inc., of North Rose, New York (the “Vendors”) to acquire two cold storage facilities in two separate parcels in New York State (“NY Properties”). Building 1 was completed 5 years ago and is in operation. Building 2 construction commenced and the Vendors spent $4.6M USD on Building 2 works, but construction was paused in 2022.
Consideration for Building 1 and Building 2 is Four Million Nine Hundred Thousand (U.S. $4,900,000.00) USD payable as a Two Hundred Thousand (U.S. $200,000.00) USD refundable Deposit on execution (PAID), and the balance on closing.
Colliers reported in their 2023 National Industrial Conference that cold storage is experiencing remarkable growth with projected increases of 13.2% through 2030, propelling this sector into a $95B market.
The Company plans to complete Building 2, and upgrade Building 1, to controlled atmosphere (“CA”) technological standard. CA involves patented airtight vacuum sealed storage where air gas composition (CO2, Nitrogen, Oxygen) is controlled, monitored and mixed to the ppm level, that dramatically enhances the freshness and quality of stored products, maximizing sale prices for clients. The Company plans use CA technology developed in the Netherlands 25 years ago in use globally (Photo 3 below). CA dramatically increases storage rental fees per square foot and in the case of the NY Properties will almost double market rent.
Closing is subject to the usual conditions of final due diligence, proof of financing, and clear title. The Company has agreed to absorb certain costs related to the new CA technology that is already contracted in an amount of USD $300,000. The properties are under agreement to be fully leased upon final completion of CA construction.
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AgriTechProperties Limited is an unlisted Reporting Issuer in the business of identifying and improving indoor agriculture storage and vertical grow properties into sale and lease opportunities. JLL the global real estate firm estimates that the average age of US cold storage structures is 42 years old. Agritech is pursuing the opportunity to upgrade the old cold storage capacity with CA and add vertical farming and modern energy capture and recycling techniques.
Donald Gordon, Director and Chief Financial Officer
AgriTechProperties Limited
Ph: 604-617-7221
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act“), or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Cautionary Statement Regarding Forward-Looking Information
Certain information contained in this news release constitutes “forward-looking information” or “forward-looking statements” (collectively, “forward- looking information”). Without limiting the foregoing, such forward-looking information includes statements regarding the Company’s business plans, expectations and objectives. Forward-looking information should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information is based on information available at the time and/or the Company management’s good faith belief with respect to future events and is subject to known or unknown risks, uncertainties, assumptions, and other unpredictable factors, many of which are beyond the Company’s control. For additional information with respect to these and other factors and assumptions underlying the forward-looking information made in this news release, see the Company’s financial statements and other documents filed by the Company with the Canadian securities commissions and the discussion of risk factors set out therein. Such documents are available at www.sedar.com under the Company’s profile.
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