Pure Harvest Smart Farms and RedSea (RedSea) have formally agreed, through a Letter of Intent (LOI), to facilitate Pure Harvest’s acquisition of RedSea’s existing six-hectare controlled-environment agriculture (CEA) production facility located near Riyadh, Saudi Arabia.
This strategic divestiture of Red Sea FarmsTM, its fresh produce business, is a pivotal move for RedSea as it undergoes a strategic transformation into a technology-focused enterprise. The company is now dedicated to the advancement and commercialization of AgriClimate technology solutions. Simultaneously, this transaction complements Pure Harvest’s expansion objectives within the Kingdom of Saudi Arabia. Pure Harvest is also introducing a novel business model innovation termed “franchise farming,” emphasizing an asset-light, technology-driven service approach. This model involves collaboration with existing farmers in various markets to globally scale sustainable farming solutions.
In January 2024, Pure Harvest is set to take over operations of the farm, immediately injecting capital for substantial improvements in production and climate control capabilities. This investment encompasses the large-scale incorporation of RedSea’s iyris SecondSkyTM technology, an innovative transparent roofing solution that blocks heat, enhancing energy efficiency in greenhouses, reducing water usage, and promoting crop well-being. The technology received prestigious awards, including the AE50 and Davidson prizes for innovation in 2023.
As part of this transaction, Pure Harvest secures a 40-hectare land bank adjacent to the current production facility, in collaboration with Alajaweed Farm. This strategic move positions Pure Harvest to expand its franchised farm initiative, aiming to develop up to 28 hectares of resource-efficient, protected agriculture production at the site—an area equivalent to 52 football pitches.
Sky Kurtz, Pure Harvest’s Co-founder & CEO, expressed excitement about the partnership and the opportunity to support RedSea’s strategic transition. He emphasized the shared belief in the crucial role of technology in addressing climate change and ensuring the availability, affordability, safety, and sustainability of food. Kurtz sees this transaction as a pivotal step in doubling Pure Harvest’s footprint in the Kingdom and deploying its innovative ‘franchise farming’ business model.
Ryan Lefers, Co-founder & CEO of RedSea, highlighted the company’s initial vision to bring innovative technologies to address climate-driven challenges in food, water, and energy. He acknowledged Pure Harvest as a custodian for RedSea’s achievements, expressing confidence in their passion, commitment, and capabilities to farm in challenging climates and invest in the Kingdom. Lefers looks forward to working with Pure Harvest as a technology partner, bringing their AgriClimate solutions to farmers worldwide.
Both Pure Harvest and RedSea have gained global recognition for their innovative approaches in agriculture, particularly in challenging climates and developing markets. This collaboration showcases their unique capabilities, positioning them not only to address the Kingdom of Saudi Arabia’s needs but also to contribute to global solutions for climate and food security challenges in some of the world’s harshest climates.