MICT, Inc. enters corporate transaction for 100% ownership of Tingo Foods

MICT, Inc. has entered into a corporate transaction giving it ownership of 100% of Tingo Foods, which has developed a food processing business with a current capacity to process and wholesale more than $1B of food produce per annum. Through a joint venture, Tingo Foods has also committed to build and operate a $1.6B food processing facility in the Delta State of Nigeria. With build, fitout and commissioning scheduled for completion by the end of the first half of 2024, the new facility is expected to multiply the size of the Company’s processing capacity and revenues, while also materially expanding its capacity for the offtake of produce from its farmers and increasing its supply into MICT‘s commodity trading platform and export business. Tingo Foods currently has the ability to produce and wholesale processed foods such as rice, millet, pasta and noodles. The range and volume of products will then increase considerably upon the launch of the new processing facility to also include tea, coffee, chocolate, biscuits, cooking oils, non-dairy milks, carbonated drinks, and mineral water, among others. Having been established and developed to date by Dozy Mmobuosi as a standalone business, Tingo Foods generated revenue of over $400M between its launch in September 2022 and December 31, 2022 and has an existing stock of processed food products with a cost value estimated at $204M. With the completion of the Tingo Mobile Limited acquisition completed on November 30, 2022, and as intended, MICT is now able to bring Tingo Foods into the group, vertically expand the group’s agricultural footprint, and enhance its further growth and development. As part of the corporate transaction to transfer the ownership of Tingo Foods into MICT as a wholly owned subsidiary, the Company will pay consideration equal to the cost value of the stock on hand, which will be satisfied by the issuance of a long-term promissory note. The Tingo Foods transaction will not result in any new issuance of MICT common stock, nor of any instruments convertible into shares of the Company.