Agrify Corporation (Nasdaq: AGFY) said that three companies have decided to operate their cultivation businesses using the company’s rapid deployment packs (RDPs) — a prepackaged, quick-to-deploy alternative to traditional grow facilities.
Prairie State Cannabis LLC in Illinois, LowKey LLC in Massachusetts and MediFlora Cultivation LTD in South Africa have all elected to use the tech, which the company said is able to provide “best-in-class” cultivation capabilities in potentially as little as 60-90 days.
The development is better news for the company, as the hydroponics sector has taken a beating this year amid a cooling correction in the markets.
“Through these new RDP customer engagements, we are excited to support a traditional outdoor farm in Illinois in its quest to expand its current operations through the introduction of indoor cultivation and extraction solutions, a minority-owned social equity dispensary and cultivation business in our home state of Massachusetts that is attempting to elevate the consumer experience in a historically disadvantaged community, and a South African enterprise aspiring to produce the highest quality pharmaceutical cannabis at a low production cost per gram,” said Agrify chairman and CEO Raymond Chang.
Our new Rapid Deployment Pack (RDP) to quickly deploy 10, 15, 20, or 28 prepackaged Agrify Vertical Farm Units so customers can swiftly begin cultivating exceptional quality cannabis, accelerating time to profitability.
— A G R I F Y (@AgrifyCorp) April 29, 2022
Agrify expects to generate over $7.5 million in cultivation-related hardware sales with additional recurring software licensing and production success fees.
The company also noted that it will initially provide each customer with an RDP configuration comprised of 56 vertical farming units, which are stackable grow pods with self-contained microclimates, light sources, irrigation and fertigation.
The vertical nature of the units also helps clients save money on rent costs, which are calculated based on total square footage rather than the height of the facility.
“Once installed, the modular nature of the RDPs allows for seamless expansion opportunities, enabling customers the flexibility to grow and scale,” the company said.
The company expects each customer to have the potential to produce an estimated 7.5 pounds of premium quality flowers per vertical farming units, per grow cycle, with approximately 5.2 grow cycles expected to be possible annually thereafter.
“Through our unwavering commitment to continuous innovation and bringing new technologies to market, the RDP program was launched to increase customer access to our VFUs and Agrify Insights cultivation software, while also providing us with a means to further increase our installed base,” Chang said.