Agrify Closes on $8 Million Offering

Agrify Corp. (Nasdaq: AGFY) is heading into the holidays with a little more green after closing its previously announced underwritten public offering of 11,884,615 shares of its common stock and pre-funded warrants to purchase 1,500,000 shares of its common stock. The accompanying warrants would purchase 26,769,230 shares of common stock.

The combined offering price was $0.649, while the stock closed today at 29 cents.

The company said it would receive $8.7 million in gross proceeds from the deal, while the net proceeds will be $8.2 million. Agrify also said it plans to use the money for working capital and general corporate purposes, which may include capital expenditures and repayment of debt.

Agrify reported its earnings in November, saying at the time that revenue fell by 55% to $7 million for the third quarter, compared to last year’s $15.8 million for the same time period. The company said that the revenue drop reflected the deferral of $5.3 million of design and build revenue in connection with the Bud and Mary’s lawsuit.

The company’s net loss for the third quarter was $46.3 million, or $17.33 per diluted share, compared to a net loss of $9.8 million, or $4.68 per diluted share, in the prior-year period.

The company ended the third quarter 2022 with a combined amount of cash, restricted cash, and marketable securities of $12.5 million. However, expenses have been rising. Operating expenses totaled $27.4 million for the third quarter versus last year’s $9.4 million in the prior year period. The company said that the increase in the operating expenses was largely attributable to increases in reserves associated with loans receivable, increases in depreciation and amortization, and changes in contingent consideration related to the fair value estimates associated with ongoing acquisition-related earnout arrangements.

At the time of earnings, Simply Wall Street wrote, “It’s probably worth noting we’ve seen significant insider buying in the last quarter, which we consider a positive. On the other hand, we think the revenue and earnings trends are much more meaningful measures of the business.”

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.


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