Vertical Farming

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Take a look at our latest partnership...

Opencloud Invest are delighted to announce their most recent partnership with the hugely exciting Agri Tech Partners who are industry leaders in Vertical Farming. This is utilising 5th generation technology in intelligent farming, offering sustainability, substantially higher yields and a much more efficient way to feed the world in the decades to come.

What is Vertical Farming?

Vertical Farming is the process of growing crops in vertical stacked layers as opposed to the traditional land passed plantation method we are all familiar with. It incorporates modern farming techniques such as hydroponics, aquaponics, and aeroponics. There are numerous benefits to this type of farming such as it requires 90% less water usage than traditional irrigation methods. The yield produced from vertical farming is nearly 10 times that of the current techniques. The crops are less vulnerable to failure due to volatile weather conditions as the vertical farms are housed indoors, finally there is the ability to produce a much more varied selection of crops as they do not need to share the same land space.

Who are Agri Tech Partners?

Agri Tech Partners are a UK based cutting edge company who own and operated cutting edge technology which is patented in the UK and USA. It owns one of the largest vertical farms in the UK. The company has been independently valued at £75 Million by Valuation Consulting, a leading technology advisory firm in the UK. The value of IAG’s equipment was valued at £3.1 million as of January 2021 by Marriott & Co Machinery and Business Assets Valuers.

They have 4 revenue stream models at present.

1. Sale of indoor farming technologies
2. Fees for design, installation and maintenance of bespoke full-service indoor farming solutions
3. Licensing fees for patented technologies
4. Sale of produce from IAG’s own indoor farm

They are accredited and partnered with various industry leaders and partners including HSBC, Department for International Trade, Red Tractor assurance and the University of Essex. The board is headed by Jaspreet Singh Phangura who comes from 4 generations of agricultural farmers, other board members include Duncan Bannatyne, a serially successful entrepreneur in Media, Hotels and sports clubs. Probably most famously known from the TV series Dragons Den. He was awarded an OBE in 2004 by the queen for his services to charity.

Investment Highlights

Agri Tech Partners are looking to raise a maximum of £10,000,000 for the continued research and development and streamlining of existing ones, also to scale up their existing product lines. The aim is to increase sales to 1000 Growframes (Their patented product) within the next 3 Years

Share offering: Special discounted to £0.50 Class B shares with a maximum of 20 Million shares, constituting a 20% ownership of the parent company
Minimum Investment: £10,000

Possible Exit Strategies:

  • IAG will seek to open the company up to public trading via an IPO on the London Stock Exchange or NASDAQ.
  • IAG will attempt to keep IAG under private ownership but enable flexible ways for its shares to be transferred when Investors decide to opt out, via management buyback, private equity investment or strategic M&A deals.

Why do Opencloud Invest Recommend this investment?

Firstly this is a public offering so the success of the investment relies on the overall success of the company. From the research we have done they have an excellent board in place who have the competence to implement the strategic goals in order to continue their growth. The company is an ongoing concern with assets and a proven revenue producing model which doesn’t just rely on one income stream, it has multiple. It has a current valuation roughly in line with the share offering. Looking at the overall industry recent events with the Pandemic have caused huge stresses on supply chains globally. In addition the current conflict between Ukraine and Russia will lead to a huge reduction in staple products such as wheat and barley (nearly 20% of Wheat supplied to the world is by these two counties) This is going to encourage Western governments to double up on alternative production methods to offset this volatility, therefore these type of Agri-Tech Start ups have exponential room for growth at present.

IAG do not expect to be offering dividends in the first 2 years as they want to focus on R&D rather than focus on returns for investors. This is not a bad thing at all. This investment should not be thought of as an revenue bringing investment immediately, more a long term strategic investment which if successful will lead to an extremely profitable share price in the future along with attractive dividends.

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