India Globalization enters agreement with TerraSphere, Greenlife India Globalization Capital announced that it has entered into an agreement with TerraSphere Systems and Greenlife Ventures to develop multiple facilities to produce organic leafy green vegetables utilizing TerraSphere's pesticide free organic indoor farming technology. The build-out for each new location could be transitioned to support the legal cannabis industry as soon as there is clarity on the evolving legal framework associated with each geographic region. Each facility will range in size from 10K-30K square feet. Once operational IGC will own 51% of each venture, which under certain circumstance, could be slightly higher or lower. IGC is required to make a cash investment in the venture and will receive a seven-year option to purchase the venture for cash and shares of its common stock. It is estimated that a successful facility of the type contemplated by this venture could produce between $2M-$2.5M in annual revenue with a projected net earnings return of about 25%. The total cost of each facility is expected to be between $2.5M-$3M. There is no guarantee that the estimated revenue and net earnings will be actually realized. The venture has committed debt financing in place for each project location.
India Globalization Capital receives land in India as settlement India Globalization Capital announces that it has received land in Nagpur, India, valued at over $4M in exchange for IGC's 22% minority ownership in Sricon. IGC's heavy equipment rental business in India and the trading business in Hong Kong have a large potential for expansion. The company plans to use this land in Nagpur as collateral for bank lines that can provide increased liquidity for these businesses.