axios Sustainable Growth Acquisition today announced the signing of a non-binding letter-of-intent for a business combination with a European agribusiness company.
The target is one of europe's largest and most sustainable farming enterprises with over 18,000 hectares (approx. 45,000 acres) of agricultural land located in one the most fertile regions worldwide, according to a press release, and is among the top 20 producers of agricultural commodities and plant-based proteins in Europe.
The target seeks additional expansion of farming operations with a focus on irrigated land and vertical integration to regionalize raw material supply and processing of agricultural goods. The target is a profitable business with double-digit returns.
Under the terms of the LOI, the target's existing equity holders rolling 100% of their equity into the combined public company. AXIOS and the target have secured initial non-binding investment indications of approximately $50 million from existing AXIOS sponsors and strategic partners. Firm commitments from those investors, as well as any other investors, would be announced concurrently with the signing of a definitive agreement, the SPAC said.
AXIOS expects to announce additional details when a definitive merger agreement is executed, which is expected in the second quarter.
AXIOS earlier this month said it had signed non-reemption agreements with one or more investors who've agreed to hold onto 400,000 shares ahead of an extension vote. Shareholders approved an extension to February 2024, although an 8-K announcing the vote result did not disclose redemptions, if any.
AXIOS raised $150 million in a February 2022 IPO to target a business engaged in the agribusiness, plant-based proteins, food processing, and related technology industry located in Central and Eastern Europe. Read more.
Source: AXIOS Sustainable Growth Signs LOI with European Agribusiness Co.