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.
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.”