Freight Farms, a Boston-based company offering hydroponic shipping container vertical farms, has entered a binding letter of intent (LOI) for a proposed business combination transaction with Agrinam Acquisition Corporation, a special purpose acquisition corporation (SPAC).

Under the terms of the LOI, the two companies would merge to form a combined entity, with existing Freight Farms shareholders exchanging 100% of their shares for equity in the new public company. The proposed business combination has a pro forma enterprise value of approximately USD 147 million.

In executing the LOI, Agrinam aims to secure around USD 20 million from current sponsors and strategic investors, of which USD 4 million has already been committed.

The completion of the proposed business combination with Freight Farms is contingent upon various factors, including the successful completion of due diligence, the negotiation of a definitive agreement outlining the proposed transaction, regulatory approvals (including approval from the Toronto Stock Exchange), and approval from the boards and shareholders of both Agrinam and Freight Farms. Agrinam intends to provide additional details regarding the proposed business combination upon execution of a definitive agreement, which is expected to occur in Q3 2023.