NEVE YARAK, Israel - N2OFF, Inc. (NASDAQ: NITO), a clean technology company, announced that its subsidiary Save Foods Ltd. has signed a non-binding letter of intent (LOI) with GENSIS PM TDC, an Ethiopian federal entity. The agreement, pending a definitive contract, could potentially generate millions in revenue for N2OFF and support Ethiopia's sustainable agriculture initiatives.
Under the terms of the LOI, large-scale Ethiopian farmers and exporters would be required to adopt Save Foods' post-harvest treatments, which aim to control pathogen contamination, extend produce shelf life, and reduce chemical use. The company's CEO, David Palach, stated that a definitive agreement is expected within a month and could significantly benefit Ethiopia's economy and public health.
Save Foods and the Ethiopian government also plan to establish a local production facility in Ethiopia, making these eco-friendly solutions widely accessible. The ultimate goal is a nationwide rollout, mandating all Ethiopian farmers to use these treatments.
Ethiopia's agriculture industry, worth an estimated $5.09 billion in 2024, is projected to grow to $6.65 billion by 2029. Agriculture is vital to the country's GDP, exports, and employment, with food crops, fruits, and vegetables being the major components.
Save Foods Ltd. focuses on food safety and waste reduction in the agri-food tech sector, offering solutions that enhance safety and quality from field to fork. Its treatments are already used on citrus, avocado, pears, apples, and mangos to ensure a healthy product while reducing food loss and waste.
N2OFF is also engaged in other sustainable solutions, including tackling greenhouse gas emissions and participating in the solar PV market through funding for Solterra Renewable Energy Ltd.
This press release contains forward-looking statements subject to risks and uncertainties, including the successful collaboration with GENSIS and the integration of Save Foods' treatments in Ethiopia's agriculture sector. The information is based on a press release statement and does not include speculation on the broader industry impacts or trends.
In other recent news, N2OFF Inc. has announced a series of strategic initiatives including a potential spin-off of its cleantech operations and the acquisition of a computational drug discovery firm. The company has also secured a €6 million credit line and issued shares to key executives and an investor. N2OFF has partnered with Solterra Renewable Energy Ltd. on a solar PV project in Melz, Germany, committing a loan of €2.08 million to the project. This marks N2OFF's entry into the solar sector, a market projected to grow to over $383.78 billion by 2032. The company's shareholders have approved a reverse stock split, but a proposal to increase the number of authorized shares did not receive majority approval. These are recent developments shaping N2OFF's journey in the renewable energy sector and corporate restructuring.
InvestingPro Insights
As N2OFF, Inc. (NASDAQ: NITO) embarks on this potentially game-changing venture in Ethiopia, investors should consider some key financial metrics and insights from InvestingPro.
According to InvestingPro data, N2OFF's market capitalization stands at a modest $1.9 million USD, reflecting its current small-cap status. This figure could see significant growth if the Ethiopian deal materializes as expected. The company's revenue for the last twelve months as of Q2 2024 was $0.17 million USD, with a substantial gross profit margin of 79.67%. These figures underscore the potential for scalability in N2OFF's business model, particularly relevant as they eye expansion into the Ethiopian market.
InvestingPro Tips highlight that N2OFF holds more cash than debt on its balance sheet, which could be crucial for funding the planned local production facility in Ethiopia. Additionally, analysts anticipate sales growth in the current year, aligning with the company's expansion plans in the Ethiopian agriculture sector.
It's worth noting that the stock is currently trading at a low Price / Book multiple of 0.32, potentially indicating an undervaluation relative to its assets. This could be particularly interesting for investors considering the company's growth prospects in light of the Ethiopian opportunity.
For a more comprehensive analysis, InvestingPro offers 12 additional tips for N2OFF, providing deeper insights into the company's financial health and market position.
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