Farm Acquisition Diversifies Company's Holdings in the Global Agri-Foods Supply Chain Sector
FORT WORTH, TX / ACCESSWIRE / August 24, 2023 / Sadot Group Inc. (NASDAQ:SDOT) (the "Sadot Group" or the "Company"), an emerging player in the global food supply chain sector, confirmed that the Company has received final regulatory approval for the previously announced acquisition of grain and tree crop producing farmland (the "Farm") located in Zambia's Mkushi Region. The Company closed on the acquisition on August 18, 2023. Situated in the country's richest agricultural zone, the Farm produces grains in high demand (wheat, soy and corn) along with mango and avocado on approximately 4,942 acres of farmland.
Sadot Group Farm, Mkushi Region, Zambia (June 2023)
"The expansion into farm operations aligns with the Sadot Group's strategic goal of increasing margins through vertical integration," said Sadot Group CEO, Michael Roper. "The Farm is expected to accrue multiple benefits to Sadot Group as it expands our position as an international agri-foods company. The Farm has the potential to provide a steady and reliable supply of grains and tree crops, which are currently experiencing constant demand and yielding higher margins. Second, the consistent production of these crops has the potential to elevate our trading operations with more sophisticated types of trades along with associated higher margins. In addition, the asset purchase is expected to improve access to credit facilities allowing for larger agri-commodity trades and improved margins. Lastly, the Farm has the potential to provide a fresh source of revenue by operating as a regional hub for smaller farmers in the region. By providing future warehousing and distribution services for their products, the Sadot Group will not only aid these farmers in reaching wider markets but may also help them optimize their agricultural practices."
The Mkushi Farmland was initially developed in 2004 and is situated in the heart of the Mkushi Region which has a superb climate for crops with rich soil and high rainfall. We have hired a deeply experienced team of farm managers who are currently farming 1,345 acres of corn, 775 acres of soybean, 270 acres of wheat, 180 acres of Hass Avocado for local and export plus 50 acres of Tommy Atkins Mango. These crops represent just over half of the Farm's acreage. Additional acreage will be planted to increase revenues and market presence. The Farm will be harvesting its first crop of wheat under Sadot Group ownership in late September into early October.
About Sadot Group Inc.
Sadot Group Inc., formerly known as Muscle Maker Inc., has rapidly established itself as an emerging player in the global food supply chain. Sadot provides innovative and sustainable supply chain solutions that address the world's growing food security challenges.
The Sadot Group connects producers and consumers across the globe, sourcing agri-commodity products from producing geographies such as the Americas, Africa and the Black Sea and delivering to markets in Southeast Asia, China and the Middle East/North Africa region.
The Sadot Group currently operates within three key verticals of the global food supply chain including 1) global agri-commodity origination and trading operations for food/feed products such as soybean meal, wheat and corn, 2) farm operations producing grains and tree crops in Southern Africa, and 3) food service operations with 47 restaurants across the U.S. and Kuwait.
The Sadot Group is headquartered in Ft. Worth, Texas with subsidiary operations in Miami, Dubai, Singapore, Kyiv and Zambia. For more information please visit www.sadotgroupinc.com.
Forward-Looking Statements
This press release may include "forward-looking statements" pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. To the extent that the information presented in this press release discusses financial projections, information, or expectations about our business plans, results of operations, products, or markets, or otherwise makes statements about future events, such statements are forward-looking. Such forward-looking statements can be identified by the use of words such as "should", "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." Although we believe that the expectations reflected in these forward-looking statements are based on reasonable assumptions, there are a number of risks and uncertainties that could cause actual results to differ materially from such forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" and elsewhere in documents that we file from time to time with the SEC. Forward-looking statements speak only as of the date of the document in which they are contained, and Sadot Group, Inc., does not undertake any duty to update any forward-looking statements except as may be required by law.
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SOURCE: Sadot Group, Inc.