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PE-backed SPAC Agrinam Acquisition files for $150m IPO

Agrinam Acquisition Corp, a special purpose acquisition corporation, has filed a preliminary prospectus in Canada for an initial public offering of $150 million of Class A restricted voting units.

Agrinam Acquisition Corp, a special purpose acquisition corporation, has filed a preliminary prospectus in Canada for an initial public offering of $150 million of Class A restricted voting units. If the IPO’s greenshoe option is fully exercised, the proceeds would total $172.5 million. The SPAC, sponsored by Agrinam Investments, an affiliate of Demeter Capital and Maquia Capital, aims to acquire one or more businesses in the North American agribusiness sector.

PRESS RELEASE

Toronto, Ontario–(Newsfile Corp. – January 21, 2022) – Agrinam Acquisition Corporation (“Agrinam” or the “Corporation”) announced today that it has filed a preliminary prospectus dated January 21, 2022 (the “Preliminary Prospectus”) with the securities regulatory authorities in all provinces and territories of Canada, except Québec, in respect of its initial public offering (“IPO” or the “Offering”) of U.S.$150,000,000 of Class A Restricted Voting units (“Class A Restricted Voting Units”). Each Class A Restricted Voting Unit has an offering price of U.S.$10.00 per Class A Restricted Voting Unit and consists of one class A restricted voting share of Agrinam (a “Class A Restricted Voting Share”) and one-half of one share purchase warrant of Agrinam (each whole warrant, a “Warrant”).

The proceeds from the distribution of the Class A Restricted Voting Units will be deposited into an escrow account and will only be released upon certain prescribed conditions. Agrinam intends to grant the Underwriters (as defined below) a non-transferable over-allotment option (the “Over-Allotment Option”) to purchase up to an additional 2,250,000 Class A Restricted Voting Units on the same terms and conditions, exercisable in whole or in part, by the Underwriters up to 30 days following closing of the Offering. If the Over-Allotment Option is exercised in full, the gross proceeds of the Offering would be U.S.$172,500,000.

Agrinam is a newly-organized special purpose acquisition corporation formed under the laws of the Province of British Columbia for the purpose of effecting, directly or indirectly, an acquisition of one or more businesses or assets, by way of a merger, amalgamation, arrangement, share exchange, asset acquisition, share purchase, reorganization, or any other similar business combination within a specified period of time following the completion of the Offering (the “Qualifying Acquisition”).

Agrinam intends to identify, evaluate, and execute an attractive Qualifying Acquisition by leveraging its robust network to find attractive investment opportunities. It intends to focus its search for one or more companies that operate across the Agribusiness industry in North America, either in the primary sector (with a focus on Superfoods and specialty products produced in high-tech greenhouses) or the value-added sector (with a focus on Food Tech as well as Wine & Spirits produced in new regions that have a niche differentiator relative to the competition). Agrinam also intends to generally target companies for its Qualifying Acquisition that have adopted best ESG practices and technologies for the efficient use of resources and are committed to taking care of the environment, including companies that will seek to promote the recycling of resources by applying the circular economy concept to reuse all possible inputs and avoid or reduce pollution and environmental degradation. Notwithstanding the foregoing, it is not limited to a particular industry or geographic region for purposes of completing its Qualifying Acquisition.

Agrinam Investments, LLC, the sponsor of the Corporation (the “Sponsor”), is a limited liability company formed by Demeter Capital and Maquia Capital, which are firms founded by Agribusiness entrepreneurs, investment bankers, consultants and investors with the desire to boost the agribusiness sector in North America. Maquia Capital’s advisory division is the largest corporate governance advisory firm in Mexico, having advised more than 100 agribusiness companies (65 out of the top 100 in Mexico), and members of Demeter Capital, an Agribusiness growth equity fund based in Mexico, have invested over U.S.$300 million across more than 40 Agribusiness projects and companies in Mexico through several Agribusiness investment funds.

The Corporation’s strategy is to leverage its directors’ and officers’ and the Sponsor’s executive leadership and entrepreneurial expertise, strong advisory and finance capabilities, and industry and investment experience in order to identify and execute an attractive Qualifying Acquisition. Agrinam’s management team and directors will undertake to identify potential investment targets, and use their relationships with senior agribusiness executives to continue to build relationships with company owners, executives, stakeholders, industry experts and financial intermediaries to uncover attractive acquisition opportunities.