Farming has come a long way from the traditional practices of the past. With the advent of technology, it has become more industrialized and efficient, leading to better crop yields and overall farm management. Precision agriculture is one such technology that has revolutionized the industry. It allows farmers to manage their farms more precisely by providing them with insights into crop growth, crop protection, weather patterns, and other crucial factors that affect crop yield.
According to the BIS Research market report, the global precision agriculture market was valued at $7.89 billion in 2022 and is expected to reach $14.61 billion in 2027, following a CAGR of 13.12% during 2022-2027.
With such rapid growth in the industry, it comes as no surprise that precision agriculture firm Braiin Limited has announced its plans to go public.
On March 20, 2023, Northern Revival Acquisition Corporation (NASDAQ: NRAC) announced its partnership with Braiin Limited. This $215 million business combination agreement would allow Braiin to enter the public markets, making its products and services accessible to a larger pool of capital. The move will undoubtedly increase awareness of their innovative technologies, helping farmers worldwide manage their farms more efficiently.
About Braiin
Braiin is an Australia-based multifaceted agricultural technology company that provides farmers and land bureaus with end-to-end precision agriculture solutions and analytics services. It uses cutting-edge technologies, such as robotics, AI/ML, software, and IoT, to increase farm productivity, crop yields, and environmental sustainability. The company presently employs over 300 people and has locations in six different countries.
By 2050, the world's population is expected to rise by 2.2 billion, necessitating the expansion of current farms' food production capacity. Braiin is uniquely positioned to assist in addressing this issue owing to its differentiated technologies and capabilities that dynamically address high-growth market trends across the complete agriculture ecosystem.
About Northern Revival Acquisition Corporation (NRAC)
The formation of NRAC, with headquarters in Delaware, U.S., was done so that it could carry out a merger, stock purchase, or other similar corporate combination. The team is made up of seasoned leaders with a distinctive mix of expertise in logistics, capital markets, wholesale and retail, technology development and transformation, and investing. Aemish Shah, the organization's chief executive officer and chairman, and Manpreet Singh, its chief financial officer and director, are in charge of NRAC.
Braiin's Precision Agriculture Technology Platform
Braiin offers a platform for precision agriculture technology which, through automation, insights, and connectivity, transforms conventional field management. Offering IoT connectivity solutions, agricultural drones, imagery, analytics, and artificial intelligence/machine learning (AI/ML) technologies, the business works in three main divisions. By mapping the landscape, observing microclimates, and automating cultivation, the central technology in this integrated platform allows farmers to achieve increased yields, which are improved by an estimated 20-25%.
Management Comments
"Partnering with Northern Revival Acquisition Corporation is a major milestone in the development of our company," says Natraj Balasubramanian, Braiin's CEO. By combining our businesses and entering the public markets, we will have access to a larger pool of capital and be able to raise awareness and adoption of our goods and services, which will help us spread the use of precision agriculture throughout the world, he further adds.
The Chairman and CEO of NRAC, Aemish Shah, adds, "Braiin is advancing agriculture by utilizing AI/ML to enhance results that benefit farmers. The robust and profitable revenue development of Braiin supports the ability of its technology to advance the agriculture sector.”
Transaction Overview
According to the BCA, NRAC will exchange freshly issued ordinary shares of NRAC for all of the outstanding Braiin shares from its current shareholders. Shareholders of Braiin, who own all of the company’s outstanding common stock, have agreed to transfer their shares to NRAC in accordance with the BCA. All Braiin convertible securities will be turned into Braiin ordinary shares prior to closing, and these shares will then be exchanged for NRAC ordinary shares. The combined company's pro forma valuation is anticipated to be around $215 million.
Current Braiin shareholders will own approximately 65% of the post-closing combined public company, assuming no redemptions by NRAC's public shareholders. They will keep 100% of their equity through new ordinary shares of NRAC.
Conclusion
Precision agriculture's future is expected to be paved by the partnership between Braiin Limited and NARC. Braiin's entry into the public markets will grant it access to a bigger pool of funding for the expansion of its goods and services.
Braiin is in a prime position to assist in addressing the issue of producing more food on existing farms with limited new land suitable for agricultural cultivation as the world's population is predicted to increase by 2.2 billion people by 2050. The deal is anticipated to conclude in Q2 or Q3 of 2023, and we eagerly anticipate seeing how Braiin's creative solutions will affect the agricultural sector.
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