Agrify Announces Multimillion Dollar Engagement with Michigan-Based Boone Labs

Rhea-AI Summary

Agrify Corporation (Nasdaq:AGFY) has entered into a $2 million agreement with Boone Labs to provide advanced cultivation and extraction solutions for their new cannabis production facility in Michigan. The deal allocates approximately $1.5 million for Vertical Farming Units (VFUs) and $0.5 million for extraction systems. The facility will feature 72 VFUs integrated with Agrify Insights software for operational precision. This partnership aims to support Boone Labs in producing consistent, high-quality cannabis products and allows for future expansion as the company seeks to grow its operations.

Positive

• Secured a $2 million agreement with Boone Labs, enhancing revenue prospects.
• Approximately $1.5 million allocated for Vertical Farming Units supports growth and efficiency.
• Comprehensive solutions offered, including extraction systems and advanced software, increase competitive edge.

Negative

• None.

New Production Facility to Be Outfitted with Agrify’s Cutting-Edge Cultivation and Extraction Solutions

BILLERICA, Mass., May 10, 2022 (GLOBE NEWSWIRE) -- Agrify™ Corporation (Nasdaq:AGFY) (“Agrify” or the “Company”), the most innovative provider of advanced cultivation and extraction solutions for the cannabis industry, announced it has signed a definitive agreement (“the Agreement”) to provide Boone Labs, a Buchanan, Michigan-based vertically integrated cannabis operator, with a broad range of cultivation and extraction solutions at its new production facility. Boone Labs will be the first customer to leverage Agrify’s full suite of offerings, across cultivation, extraction, and consumer brands, to create a fully operational cannabis production business.

Under the terms of the Agreement, which is valued at $2 million, approximately $1.5 million will go towards Vertical Farming Units (“VFUs”) and $0.5 million will go towards a full range of extraction systems. Agrify expects to supply Boone Labs with a comprehensive lineup of the services and equipment necessary to launch a highly successful cannabis production facility. The Agreement consists of facility design services, industry-leading cultivation, extraction, distillation, isolation, and lab equipment, proven recipes and operating procedures for growing consistently high-quality flower and creating connoisseur-grade extracts, as well as the most advanced and intuitive automation and production-planning software. Boone Labs has opted to outfit its 8,500 sq. ft. state-of-the-art facility with some of Agrify’s top solutions including Longs Peak Rosin Presses and Axis Trichome Separators for solventless extraction, the PX1 for hydrocarbon extraction, and 72 VFUs, fully integrated with Agrify Insights™ software, for cultivation. This approach will enable precise control over operations, while providing the accompanying data to prove active ingredient levels, in order to produce consistent high-quality cannabis with exceptional ROI. Boone Labs is starting with 72 VFUs to remain compliant with the 3,500 plant limit in its current Michigan license, but has room to add an additional 24 VFUs when given an expanded license.

“By harnessing the power of data, science, and technology – as well as fostering close consultative relationships with our customers – Agrify continues to execute on our mission to be the leading end-to-end solution provider in the industry for cannabis operators,” said Raymond Chang, CEO of Agrify. “Following exhaustive due diligence, companies, whether they’re new to the industry or well-established, are concluding that Agrify’s solutions provide the fastest and surest means to establishing a profitable cannabis operation. Whether the goal is to expand business and become a multi-state operator (“MSO”) or quickly reach profitability as a regional “premium craft” grower, like Boone Labs, Agrify’s solutions can be tailor-made to meet the needs of individual businesses. We look forward to working closely with Boone Labs, and we’re confident that we will help them fulfill their mission of establishing a world-class cultivation and processing facility in Buchanan, MI that is capable of consistently producing premium flowers, high-value concentrates, and other popular cannabis products at scale.”

“From the very beginning, Boone Labs has been dedicated to producing connoisseur-grade extracts, and we quickly found that using solventless extraction from PurePressure with the Kush Masters process was the best way for us to meet customer demand,” said Rick Boone, CEO of Boone Labs, Inc. “As our business plans grew and the popularity of concentrate products increased, our goal evolved to become the premium source for high-quality and high-consistency cannabis products in Michigan and beyond. Achieving this goal requires expanding our business operations and becoming vertically integrated to give us full control over quality and consistency from the cultivation side to the wide variety of SKUs we deliver. We’re confident that the trust we’ve built beginning with PurePressure and Kush Masters will extend across the hydrocarbon, distillation, isolation, and cultivation solutions from Agrify. It’s an amazing experience seeing the steps come to fruition for our buildout projected by the end of the year.”

About Agrify (Nasdaq:AGFY)
Agrify is the most innovative provider of advanced cultivation and extraction solutions for the cannabis industry, bringing data, science, and technology to the forefront of the market. Our proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce the highest quality products with unmatched consistency, yield, and ROI at scale. Our comprehensive extraction product line, which includes hydrocarbon, ethanol, solventless, post-processing, and lab equipment, empowers producers to maximize the quantity and quality of extract required for premium concentrates. For more information, please visit Agrify at http://www.agrify.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning Agrify and other matters. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our customer relationship with Boone Labs, Boone Labs’ efforts to expand their business, the revenue expected from the Agreement, project timelines, including delivery and setup timelines, the quality or extent of products produced under the Agreement, and our ability to deliver solutions and services. In some cases, you can identify forward-looking statements by terms such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “targets,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2021 filed with the SEC, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.

Company Contacts

Agrify
Timothy Oakes
Chief Financial Officer
tim.oakes@agrify.com
(781) 760-7512

Investor Relations Inquiries
Anna Kate Heller
ICR
agrify@icrinc.com

Media Inquiries
Justin Bernstein
MATTIO Communications
agrify@mattio.com

FAQ

What is the significance of Agrify's agreement with Boone Labs?

The $2 million agreement allows Agrify to provide advanced cultivation and extraction solutions, enhancing revenue and supporting Boone Labs in establishing a new cannabis production facility.

How much of the agreement amount will be used for Vertical Farming Units?

Approximately $1.5 million of the $2 million agreement will be allocated to Vertical Farming Units.

What products will Boone Labs be able to produce with Agrify's solutions?

Boone Labs aims to produce consistent, high-quality cannabis products, including concentrates and connoisseur-grade extracts.

How does Agrify's technology benefit Boone Labs?

Agrify's technology, including integrated software and VFUs, enables precise control over cultivation processes, ensuring high-quality yields and operational efficiency.