Forafric Global PLC shifts focus to Morocco and soft wheat, divesting non-core assets to strengthen its balance sheet.
Quiver AI Summary
Forafric Global PLC has announced a strategic shift focused on enhancing its presence in Morocco and the soft wheat sector by divesting non-core assets, including operations outside Morocco, durum wheat businesses, and certain logistics activities. The company expects to generate gross proceeds between $80 million and $100 million from these divestments, which will improve its balance sheet and working capital position. Additionally, Mr. Khalid Assari has been appointed as the new CEO, succeeding Mr. Mustapha Jamaleddine, who retired at the end of 2024. Forafric is recognized as a leading agribusiness in Africa, particularly in milling and related products, and aims to expand its operations in Morocco further.
Potential Positives
- The company is divesting non-core assets, focusing on Morocco and soft wheat, which will streamline operations and allow for more targeted investment.
- The divestment program is expected to generate gross proceeds of between 80 and 100 million USD, strengthening the company's balance sheet and improving its working capital position.
- Appointment of Mr. Khalid Assari as CEO, who has previous leadership experience within Forafric Morocco, can provide stability and continuity for the company's operations in the region.
- The company continues to emphasize its expansion strategy in Morocco, indicating potential growth and long-term commitment to the market.
Potential Negatives
- The announcement of divesting non-core assets may suggest that the company is struggling to maintain profitability or focus on more lucrative areas, raising concerns about its overall business health.
- The leadership change with the departure of a long-term CEO could lead to uncertainty among investors and stakeholders regarding the company's future direction and stability.
- The company acknowledges various risks and uncertainties that could affect its future performance, indicating potential instability and challenges that may impact investor confidence.
FAQ
What new strategy has Forafric Global PLC adopted?
Forafric has adopted a balance sheet strengthening strategy focused on Morocco and soft wheat.
Why is Forafric divesting non-core assets?
The divestment of non-core assets aims to improve the company's balance sheet and working capital position.
Who is the new CEO of Forafric Global PLC?
Mr. Khalid Assari has been appointed as the new CEO, replacing Mr. Mustapha Jamaleddine.
What are the expected proceeds from Forafric's divestment program?
The divestment program is estimated to generate gross proceeds between 80 and 100 million USD.
How does Forafric plan to expand in Morocco?
Forafric intends to continue expanding its operations and activities within Morocco’s agribusiness sector.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AFRI Hedge Fund Activity
We have seen 22 institutional investors add shares of $AFRI stock to their portfolio, and 9 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- RHUMBLINE ADVISERS added 28,807 shares (+465.1%) to their portfolio in Q4 2024, for an estimated $295,271
- BLACKROCK, INC. added 16,727 shares (+13.9%) to their portfolio in Q4 2024, for an estimated $171,451
- GOLDMAN SACHS GROUP INC added 11,270 shares (+inf%) to their portfolio in Q4 2024, for an estimated $115,517
- BANK OF NEW YORK MELLON CORP removed 10,624 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $120,476
- CITADEL ADVISORS LLC added 10,562 shares (+inf%) to their portfolio in Q3 2024, for an estimated $119,773
- UBS GROUP AG added 8,976 shares (+320.7%) to their portfolio in Q3 2024, for an estimated $101,787
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Full Release
Announces Enhanced Focus on Morocco and Soft Wheat through Initiatives to include Divesting Non-Core Assets
CASABLANCA, MOROCCO, Feb. 11, 2025 (GLOBE NEWSWIRE) -- Forafric Global PLC (Nasdaq: AFRI, or the “Company”)
, a leading vertically integrated agribusiness serving Africa, today announced that it has adopted a new balance sheet strengthening strategy with a Morocco and soft wheat focus. As part of this initiative, the Company is divesting non-core assets: assets outside of Morocco, durum wheat focused businesses and logistics activities in Morocco. The Company estimates that this divestment program will generate gross proceeds of between 80 and 100 million USD. These divestments will strengthen the Company's balance sheet and will significantly improve its working capital position.
The Company also announced that it has appointed Mr. Khalid Assari as CEO of the Company and its wholly-owned subsidiary, Forafric Morocco. Mr. Assari replaces Mr. Mustapha Jamaleddine, who retired effective December 31, 2024. From 2016 through 2018, Mr. Assari was the CEO of Forafric Morocco; most recently, he was an investor in the real estate and agrobusiness sectors in Morocco.
About Forafric
Forafric is a leading agribusiness player in Africa with activities in Morocco and Sub-Saharan Africa. It is a 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 in Morocco.
Forward-Looking Statements
This press release contains “forward-looking statements.” Such statements may be preceded by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential,” or similar words. Forward-looking statements are not guarantees of future performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company’s control, and cannot be predicted or quantified, and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. None of the outcomes expressed herein are guaranteed. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our ability to obtain quality raw materials; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; and (v) difficulties in securing regulatory approval for our materials and products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company’s filings with the Securities and Exchange Commission (SEC), including the Company’s Annual Report on Form 20-F. Investors are urged to read these documents free of charge on the SEC’s website at
http://www.sec.gov
. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise.
Contact Information:
info@forafric.com
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