Moroccan agribusiness company Forafric announced this Monday that it has entered into a definitive business combination agreement with Globis Acquisition Corp.

The new structure will be called Forafric Global Plc after merging. It will be the first company based in Morocco to be listed on the Nasdaq in New York. The stock symbol of its ordinary shares will be Agriculture and Food Research Initiative (AFRI), the US’ leading grants program for the agricultural sector.

Forafric will be an agribusiness company serving North Africa, while Globis Acquisition Corp, a special purpose acquisition company (SPAC), will set up its head office in Gibraltar. As part of the merger, the Forafric structure will operate under the new name of Forafric Global Plc.

Special purpose acquisition companies (SPAC) are shell companies that raise money in an initial public offering (IPO) and put them in a trust for the purpose of merging with a private company and taking it public.

Said Bendidi, Forafric executive vice-president since 2018, said in a press release that the company is proud of becoming the first agribusiness company from Morocco and Africa to be listed at the NASDAQ.

“The business combination will provide our company with additional capital to advance our strategic and operational initiatives, while the public listing will provide us with increased visibility to our clients, partners and potential investors,” Bendidi commented.

Paul Packer, Globis’ CEO, said: “We are extremely pleased to partner with Forafric to create significant shareholder value by using Forafric's long history to address a significant and growing need to bring food security and sustainability to an under-capitalized and large market.”

According to SEC documentation, the former regulator of the American stock market, the amount of the operation’s closing is expected to be up to $20 million in cash, excluding unpaid debts at the end of the merger. This will come in addition to the purchase of some 15 million in shares of the target company by the acquirer.

Forafric was bought in 2014 by Moroccan businessman Yariv Elbaz who is also the owner of the fund investor Ycap.

Forafric has a storage capacity of 250,000 tonnes, seven production units, and 2,200 tonnes per day of process crushing capacity. The company also owns two leading brands, Tria and MayMouna, and maintains distribution in 45 countries.

Founded in 1971, Nasdaq, originally, an acronym for “National Association of Securities Dealers Automated Quotations,” is a global electronic marketplace for buying and selling securities. It operates 25 markets, one clearinghouse, and five central securities depositories in the United States and Europe.

Most of the world's technology giants are listed on the Nasdaq. It is ranked second on the list of stock exchanges by market capitalization of shares traded, the New York Stock exchange being ranked first.