A Vancouver-based agtech company didn’t exactly hit it out of the park on its first day of trading.
AgriFORCE Growing Systems Ltd. fell 2.95 percent on the NASDAQ Capital Market to close at US$4.61 after a $13.6-million initial public offering.
The shares declined sharply to US$3.75 in the first 90 minutes of trading before rebounding through the rest of the day.
They continued rising in after-hours trading, reaching US$5 at 2:44 p.m. Pacific daylight time.
About 3.5 million shares changed hands while the market was open.
AgriFORCE hopes to disrupt modern agricultural development through an automated growing system.
It also plans to invest in companies that are innovating in plant-based pharmaceutical, nutraceutical, and other areas to enable them to optimize yields in controlled environments.
Even though its head office is in Vancouver, its primary operating activities are in California.
In the video below, CEO Ingo Mueller says that the company went outside the agtech industry to consult with architects engineers, and even NASA scientists about how to grow plants more effectively.
Mueller’s total compensation in 2020 was US$417,822, according to the company’s prospectus. That made him the highest-paid member of the executive team.
He also has 200,000 stock options, which can be exercised at US$1.31, expiring on December 12, 2024.