Agrify Archives - Green Market Report

Kaitlin DomangueFebruary 24, 2021
Daily-Hit-Header.png?fit=960%2C400&ssl=1

5min3460

It’s time for your Daily Hit of cannabis financial news for February 24th, 2021. 

On the Site 

Ardent Life: A Company Revolutionizing Cannabis Technology

Ardent Life Inc., was founded in 2015 by Shanel Lindsay. The Green Market Report is featuring  a series of Black-owned businesses for Black History Month, and Ardent Life is part of that. 

Lindsay developed the sublingual method of administering cannabis after years of fiddling with her dose. This administration route had never been introduced to the cannabis industry before, which led to Lindsay immediately protecting her concepts before other companies could grab hold of it. In 2014, G.W. Pharmaceuticals gave $100 million to the company to support FDA trials of the company’s sublingual sprays, Sativex and Epidiolex.

Besides her work with Ardent, Shanel is an attorney and activist for the cannabis industry, fighting for equity amongst the industry.

 

Michigan May Get Its Own Marijuana Stock Exchange

Cimone Casson is the owner of cannabis insurance brokerage firm Cannas Capital, Michigan Chapter President for Minorities 4 Medical Marijuana, and the driving force behind another initiative that is poised to push Michigan to the forefront of social equity. Casson’s objective is to create a local stock exchange, the Michigan Marijuana Market, that focuses on raising capital for minorities in local communities impacted by the War on Drugs. 

 

Former Eaze CEO Pleads Guilty in Bank Fraud Case

James Patterson, the former CEO of California cannabis delivery platform Eaze pleaded guilty to one count of conspiracy to commit bank fraud according to a report at Law360. The plan was a scheme to deceive banks into processing more than $100 million worth of credit and debit payments for marijuana purchases. The major banks and credit card companies like Visa (NASDAQ: V) and Mastercard (NYSE: MA) refuse to work with cannabis companies as the product is still federally illegal. So any transactions using these products or lying to banks about the nature of the transactions is illegal.

 

The Pros and Cons of CBD Joints

Pros:

  • Great flavor
  • Easy to assemble ahead of time
  • Higher bioavailability

Cons:

  • Potential danger to your health
  • Antisocial 

In Other News

Agrify Announces New Advisory Board

Vertical grow solutions company, Agrify (NASDAQ: AGFY), has announced the formation of its new Strategic Advisory Board. 

Rosie Mattio, Founder and Chief Executive Officer of MATTIO Communications, and Matthew Kressy, Founding Director of the MIT Integrated Design & Management (IDM) program, have both been appointed to serve as trusted advisors to the Company. The Advisory Board has been established to bring together a talented and accomplished group of outside leaders to provide strategic guidance and industry expertise on various aspects of Agrify’s business, including market opportunities, public relations, and hardware and software design and solutions.


Debra BorchardtFebruary 19, 2021
agrify2-2-scaled.jpg?fit=960%2C1047&ssl=1

5min4800

This week indoor growing company Agrify Corporation (Nasdaq: AGFY) priced an underwritten public offering of over five million shares of its common stock at a price to the public of $13.50 per share for gross proceeds of approximately $75 million. The stock was lately selling at $14.45.

The offering is expected to close on or about February 19, 2021. Maxim Group LLC was acting as sole book-running manager in connection with the offering. In January, the company went public and raised $54 million with its shares priced at $10.

New Deals

The company also announced it has entered into a binding letter of intent with Hannah Industries, a leading Tier 2 producer and distributor of cannabis in Washington State, for the design and build-out of an approximately 30,000 square foot facility. The company said that the contract will include facility build-out services for a total of $3 million and annual SaaS revenue of approximately $285,000. Such payments will be financed by Agrify, are to be made monthly over a two-year period commencing upon the first successful harvest, and will reflect an APR of 25%. The agreement for this design and build-out will be in addition to the previously purchased 179 Vertical Farming Units and is part of Agrify’s turnkey solution to its customers. The work is expected to be completed by early Q4 2021, subject to entry into a definitive agreement.

“We are especially proud to be selected by Hannah Industries, a leading producer and distributor in the State of Washington. Their decision to upgrade from the traditional grow methodology to Agrify’s integrated vertical farming solution is the strongest testimony of our joint belief that Agrify’s solution will help Hannah Industries to produce the highest quality cannabis flowers consistently. We’re thrilled to have been chosen again by Hannah for the facility design, construction, and installation of our proprietary and advanced grow solutions,” said Raymond Chang, Chief Executive Officer of Agrify. “Agrify VFUs and Agrify Insights software should also help Hannah realize increased levels of automation, control, transparency, and repeatability. We expect this will be a great win for our team, and we look forward to working with Hannah to successfully implement it.”

Last week Agrify announced a new partnership with Confident Cannabis that should seamlessly integrate Confident Cannabis’ lab data with Agrify Insights, allowing cannabis cultivators to augment and improve certain processes to optimize the chemical composition of plants while cultivating at scale.

“With this data, we believe cultivators will be able to decipher how certain growing environments affect the plant’s chemical composition,” said Chang. “This partnership will allow our clients to understand the cultivation process necessary to achieve their desired targets, whether it’s a better yield, higher terpene expression, or a variety of other objectives. We’re thrilled to partner with Confident Cannabis to provide even more value to our clients in terms of consistency, quality, and reliability at scale.”

“The chemical ratio of a cannabis plant is a function of its genetics and its growing environment, so understanding how different climates affect its chemical profile is crucial to optimizing output,” added Steve Albarran, Co-CEO of Confident Cannabis. “Our integration with Agrify empowers cannabis growers to produce plants with the desired chemical profiles, furthering our shared mission to simplify cannabis wholesale testing and trade to help bring trust and transparency to the cannabis industry.”


Debra BorchardtJanuary 29, 2021
agrify2-2-scaled.jpg?fit=960%2C1047&ssl=1

6min11630

Indoor agriculture company Agrify Corporation (Nasdaq: AGFY) has listed its shares on the NASDAQ after pricing its upsized initial public offering of 5,400,000 shares of common stock at a price of $10.00 per share for total gross proceeds of $54 million. The shares began trading on the Nasdaq Capital Market under the symbol “AGFY” on Thursday.

Raymond Nobu Chang, President & CEO of Agrify said, “We’re beyond thrilled to officially announce our IPO. This is an incredible step forward to solidifying Agrify’s foothold in the indoor agriculture and tech space. We look forward to empowering a generation of modern growers to achieve better consistency and quality through the understanding that cultivation techniques must evolve to meet the market’s future needs.” The company said that it does not cultivate, come in contact with, distribute or dispense cannabis or any cannabis derivatives that are currently prohibited under U.S. federal law, but notes that its cultivation solutions can be used within indoor grow facilities by cannabis cultivators if they choose to do so.
In addition to the shares that began trading, Agrify has granted the underwriters a 45-day option to purchase up to an additional 810,000 shares of common stock to cover over-allotments, if any. The offering is expected to close on February 1, 2021, subject to customary closing conditions. Maxim Group LLC and Roth Capital Partners are acting as joint book-running managers for the offering. The company reported net revenue of $4 million in 2019, which grew to $7.7 million for nine months ending September 30, 2020. The net losses were $8.5 million for those nine months in 2020.

Backlog

As of December 31, 2020, Agrify said its backlog, which consists of purchase orders or purchase commitments, was $59.3 million. In the company’s filing, it said, “We expect to recognize revenue of approximately $40 million in 2021 and the rest gradually thereafter. As of December 31, 2020, we have $105 million of carefully vetted potential sales opportunities (which we refer to as our qualified pipeline). Of this, $78 million of the qualified pipeline was generated through our company directly and $27 million through our Agrify-Valiant Joint-Venture. We are presently working to convert this pipeline into confirmed bookings over the next 12 months.”

Horizontal Modular Growing

“We believe that our AVFU is the only product on the market that offers a modular, compartmentalized micro-climate growing system for indoor vertical farming. These 8.5 ft. long x 4 ft. wide x 9.3 ft. tall units each have two tiers of growing space. They are designed to line up horizontally in rows, and they can be stacked vertically up to 3 units tall allowing a total of 6 layers of canopy, effectively taking advantage of previously unused indoor vertical space. The AVFU is a premium indoor grow solution with an MSRP starting at $20,000, and our most recent AVFU deals have been for between 60 and 535 units as our new customers become satisfied that our grow solutions will be an instrumental part of their operations moving forward. We are targeting large scale projects that range in size from $1 million to over $10 million in AVFU hardware sales before any additional revenue from our Agrify Insights™ software and ancillary products and services are realized.”

“A key component of our cultivation solution is our proprietary software, Agrify Insights, which has been developed in-house. This cloud-based software interfaces with a microservices middleware and relational database that integrates with our hardware and provides our managers, facility owners, facility managers, and growers real-time control and monitoring of facilities, growing conditions, and insights into both production and profit optimization. The combination of precise environmental control and automation with data collection and actionable insights empowers our customers to be more efficient, more productive, and more intelligent about how they run their businesses. We believe that the robust data analytics capabilities from our Agrify Insights platform coupled with our AVFU system is enabling our customers to transform their businesses and quality of the product they are cultivating.”


Don't Miss This Week's Exclusive News

Our team will cultivate the cannabis industry’s critical news and deliver it directly to your inbox every Friday. Don't miss it. Subscribe Now.

We respect your privacy. See our privacy policy.


About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


READ MORE


Back to Top