Forafric Closes Cap Holding Deal, Offloading $28M in Debt and Securing $10M Capital Injection
AFRI sits 40% above its 52-week low of $7.47.
Summary
Forafric Global completed the transfer of a 68% controlling stake in its Moroccan subsidiary to Cap Holding, a deal that significantly deleverages the subsidiary and brings in fresh capital. Cap Holding is injecting approximately $10 million via a capital increase and reducing Forafric Maroc's debt by roughly $28 million, while also committing to fund the subsidiary's financing needs for two years without diluting Forafric's retained stake. This follows the going-concern warning in May and the sale of the Portuguese unit in July, marking a critical step in the company's restructuring. The deal removes a major debt overhang and provides working capital support to the parent, directly addressing near-term liquidity concerns. The potential acquisition of Millcorp, representing 25% of 2025 assets, remains a key strategic catalyst but is not yet definitive.
At the time of this announcement, AFRI was trading at $10.44 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $281.5M. The 52-week trading range was $7.47 to $11.42. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: BusinessWire.