Agrify Raises $27 Million In Private Placement

Agrify Corporation (Nasdaq: AGFY) has entered into securities purchase agreements with an institutional investor and other accredited investors in a private placement transaction raising approximately $27.3 million. The offering is expected to close on or about January 28, 2022. Agrify said it plans to use the net proceeds from the offering for general corporate purposes, including, among other things, working capital, product development, acquisitions, capital expenditures, and other business opportunities.

Offering Details

According to a company statement, Agrify will issue and sell 4,020,994 shares of common stock or, in lieu of Common Stock, pre-funded warrants and accompanying warrants exercisable six months from closing to purchase up to 3,015,745 shares of Common Stock for a period of five years at an exercise price of $7.48 per share. The Common Stock and Warrants will be sold at a combined purchase price of $6.80. Members of management and the Board, including Raymond Chang, the Chairman and Chief Executive Officer of the Company, participated in the Offering on the same terms as the other investors except for a combined purchase price of $6.90. The Company expects to receive gross proceeds from the Offering of approximately $27.3 million before deducting placement agent fees and estimated offering expenses.

Agrify recently closed its acquisition of PurePressure, a company that has solventless extraction and advanced ice water hash processing equipment in the cannabis and hemp industry. With the acquisition of PurePressure, Agrify has strengthened its rapidly expanding extraction division by adding best-in-class solutions to its product portfolio in two of the fastest-growing subcategories in the cannabis and hemp extraction market. In addition to its other extraction solutions, Agrify can now offer its customers premium solventless processing products and rosin presses to support any operation, big or small. The Company also inherits PurePressure’s intellectual property, talent, and stellar reputation for quality, reliability, precision, control, and exceptional customer service. PurePressure’s annual revenue for 2021 is approximately $10 million, and the acquisition is expected to be accretive in early 2022. By combining PurePressure with Precision Extraction Solutions and Cascade Sciences, two other recent acquisitions made by Agrify, the company has formed the largest and the most powerful cannabis and hemp extraction solution provider in the world.

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