Agroland Business System obtains a grant funding through the SME AGRI-FOOD program
Agroland Business System (BVB: AG), Romanian entrepreneurial retail, agriculture, and food group, which operates the largest network of agricultural stores in Romania, obtains non-reimbursable financing under the SME AGRI-FOOD program (working capital grants) launched by the Ministry of Entrepreneurship and Tourism. The grant value is approximately 120,000 euros, and the capital raised will be used for purchasing raw materials and materials.
“Agroland is a company with the resources and knowledge to apply and obtain diversified funding, such as state aid or grants. We aim to constantly access such financing to have additional sources of capital available for investment. Raw materials and materials, such as natural gas, electricity, and feed, purchased with this funding will reduce the significant price pressure we feel in the new economic context marked by the war in Ukraine and the general inflationary environment. In addition to this financing through AGRI-FOOD SMEs, we currently have two other funding projects submitted, totalling 470,000 euros. One project has a value of 290,000 euros, and the capital raised will be used to finance the company’s current activity. For the second project, the funding is 180,000 euros, which will be invested in a breeding poultry farm, the first of its kind being completed by us in 2021. At the same time, we also plan to submit a financing project for a 1 MW photovoltaic park at Avicola Mihăilești once the financing measure is available,” stated Horia Cardoș, founder and CEO of Agroland Business System.
The measure “Grants for working capital granted to agri-food entities” (SME AGRI-FOOD) is part of the state aid scheme established by Emergency Ordinance no. 61 of May 6, 2022, regarding selected measures for granting micro-grants and working capital grants to agri-food entities with financing from non-reimbursable funds. The total budget allocated to working capital grants is 250 million euros.
The funding application session was opened between May 26 and 31, 2022. Approximately 11,000 entries were registered, of which 9,678 were declared eligible, and 1,283 were rejected. The contracts under the SME AGRI-FOOD program will be signed with the first 3,700 winners of the grants by the end of June 2022. The project submitted by Agroland is placed in the 345th position. The co-financing to be provided by the company amounts to 18,000 euros. After signing the contract, the company aims to access the grant as soon as possible, in a single instalment.
Agroland Business System is listed on the AeRO market of the Bucharest Stock Exchange as of March 1st, 2021, and is traded under the symbol AG. Currently, the company has a market capitalization of over 160 million lei.
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About Agroland Business System
Agroland Business System (BVB: AG) is a Romanian entrepreneurial company, which owns the largest network of agricultural stores in Romania. The company was founded in 2009 in Timișoara by the entrepreneur Horia Cardoș and today operates a network of over 250 stores specializing in the sale of the garden, farm, and pet products. The company also owns the Avicola Mihailesti platform, where it produces table eggs and one-day-old chicks. This platform consists of six farms located on an area of 30 hectares in Giurgiu County. Agroland is also active in the technology area through AgTech TM by Agroland, the first complete incubation program in Romania that stimulates and supports innovation in agriculture. The shares of Agroland Business System have been floating on the AeRO market of the Bucharest Stock Exchange since 1 March 2021 under the symbol AG.