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Agrify Secures Financing from Green Thumb Industries and Announces New Leadership

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Agrify (AGFY) has secured a $20 million convertible secured note from a Green Thumb Industries subsidiary, with $10M available at closing. Green Thumb also acquired an ownership stake in Agrify through stock and warrant purchases from outgoing executives. Benjamin Kovler, Green Thumb's Founder and CEO, has been appointed as Agrify's Chairman and Interim CEO, replacing Raymond Chang. Additionally, Richard Drexler and Armon Vakili joined the Board, bringing total membership to six. The company will continue operating independently, retaining the majority of its existing management team and independent Directors.

Agrify (AGFY) ha ottenuto un nota convertibile garantita di 20 milioni di dollari da una sussidiaria di Green Thumb Industries, con 10 milioni di dollari disponibili al closing. Green Thumb ha anche acquisito una partecipazione di proprietà in Agrify tramite acquisti di azioni e warrant da parte dei dirigenti uscenti. Benjamin Kovler, Fondatore e CEO di Green Thumb, è stato nominato Presidente e CEO ad interim di Agrify, sostituendo Raymond Chang. Inoltre, Richard Drexler e Armon Vakili si sono uniti al Consiglio, portando il totale dei membri a sei. L'azienda continuerà a operare in modo indipendente, mantenendo la maggior parte del suo attuale team di gestione e dei Direttori indipendenti.

Agrify (AGFY) ha asegurado una nota convertible garantizada de 20 millones de dólares de una subsidiaria de Green Thumb Industries, con 10 millones de dólares disponibles al cierre. Green Thumb también adquirió una participación en Agrify a través de compras de acciones y warrants de ejecutivos salientes. Benjamin Kovler, Fundador y CEO de Green Thumb, ha sido nombrado Presidente y CEO interino de Agrify, reemplazando a Raymond Chang. Además, Richard Drexler y Armon Vakili se unieron a la Junta, llevando el total de miembros a seis. La empresa continuará operando de manera independiente, manteniendo la mayoría de su equipo de gestión existente y Directores independientes.

Agrify (AGFY)Green Thumb Industries 자회사를 통해 2천만 달러 규모의 전환 가능한 담보 노트를 확보했으며, 그 중 1천만 달러는 종결 시점에서 이용 가능합니다. Green Thumb는 또한 퇴직한 경영진들로부터의 주식과 워런트 구매를 통해 Agrify의 소유 지분을 확보했습니다. Benjamin Kovler는 Green Thumb의 설립자이자 CEO로서 Agrify의 회장 겸 임시 CEO로 임명되어 Raymond Chang을 대체하게 되었습니다. 또한 Richard Drexler와 Armon Vakili가 이사회에 합류하여 총 회원 수를 6명으로 늘렸습니다. 회사는 독립적으로 운영을 계속하며, 기존의 경영팀과 독립 이사들을 대다수 유지할 것입니다.

Agrify (AGFY) a sécurisé une note convertible garantie de 20 millions de dollars d'une filiale de Green Thumb Industries, avec 10 millions de dollars disponibles à la clôture. Green Thumb a également acquis une participation dans Agrify par le biais d'achats d'actions et de bons de souscription auprès de dirigeants sortants. Benjamin Kovler, fondateur et PDG de Green Thumb, a été nommé président et PDG par intérim d'Agrify, remplaçant Raymond Chang. De plus, Richard Drexler et Armon Vakili ont rejoint le conseil, portant le nombre total de membres à six. L'entreprise continuera à fonctionner de manière indépendante, conservant la majorité de son équipe de direction existante et de ses administrateurs indépendants.

Agrify (AGFY) hat eine 20 Millionen Dollar teure, wandelbare gesicherte Note von einer Tochtergesellschaft von Green Thumb Industries gesichert, wobei 10 Millionen Dollar bei Vertragsabschluss verfügbar sind. Green Thumb hat auch einen Anteil an Agrify durch den Kauf von Aktien und Optionen von scheidenden Führungskräften erworben. Benjamin Kovler, Gründer und CEO von Green Thumb, wurde zum Vorsitzenden und Interims-CEO von Agrify ernannt und ersetzt Raymond Chang. Zudem sind Richard Drexler und Armon Vakili in den Vorstand eingetreten, was die Gesamtanzahl der Mitglieder auf sechs erhöht. Das Unternehmen wird weiterhin unabhängig operieren und die Mehrheit seines bestehenden Managementteams sowie die unabhängigen Direktoren behalten.

Positive
  • Secured $20M convertible note financing, with $10M available immediately
  • Strategic investment and ownership stake from established cannabis industry leader Green Thumb Industries
  • Appointment of experienced leadership with proven track record in cannabis industry
Negative
  • Leadership transition and uncertainty with interim CEO arrangement
  • Departure of Chairman/CEO and Director indicates potential strategic shifts

Insights

This $20 million convertible note financing from Green Thumb Industries marks a significant strategic shift for Agrify. The immediate $10 million cash infusion provides important working capital for the struggling cannabis technology provider, whose market cap has dwindled to just around $4 million. The deal structure, including stock and warrant purchases from outgoing executives, indicates a potential strategic takeover rather than just a financing arrangement.

The appointment of Green Thumb's CEO Ben Kovler as Agrify's Chairman and Interim CEO, along with other Green Thumb executives to the board, suggests a major operational overhaul is coming. Green Thumb's successful track record in the cannabis industry and strong balance sheet could help stabilize Agrify's business and potentially integrate its cultivation technology into Green Thumb's operations. This rescue financing, while dilutive, appears necessary for Agrify's survival and could lead to significant operational synergies.

TROY, Mich., Nov. 05, 2024 (GLOBE NEWSWIRE) -- Agrify Corporation (Nasdaq: AGFY) (“Agrify” or the “Company”), a leading provider of innovative cultivation and extraction solutions for the cannabis industry, today announced that its Board of Directors has approved a $20 million convertible secured note (the “Financing”), of which $10M will be drawn upon at closing, from a wholly-owned subsidiary of Green Thumb Industries Inc. (“Green Thumb”) (CSE: GTII) (OTCQX: GTBIF), a leading national cannabis consumer packaged goods company and owner of RISE Dispensaries. Prior to this financing, the Green Thumb subsidiary acquired an ownership stake in Agrify through the purchase of common stock and warrants (the “Transaction”) from its outgoing Chairman and CEO Raymond Chang and outgoing Director I-Tseng Jenny Chan. Agrify will continue to operate as an independent business and was not a participant in the Transaction. Following the Transaction and Financing, Agrify retains the majority of its existing management team and all of its independent Directors.

Concurrent with the Financing, Raymond Chang resigned as Chairman and CEO of Agrify and I-Tseng Jenny Chan stepped down from the Board. Following the acceptance of the resignations, the Agrify Board appointed Benjamin Kovler, Richard Drexler, and Armon Vakili to replace the outgoing Directors, bringing the total Board membership to six, the majority of whom are independent. In addition, Mr. Kovler was appointed to the roles of Agrify’s Chairman and Interim CEO following Mr. Chang’s resignation. Mr. Kovler, the Founder, Chairman and Chief Executive of Green Thumb, will retain his leadership and responsibilities at Green Thumb, where he is focused on creating value for Green Thumb shareholders. Over his tenure at Green Thumb, he has successfully grown the company into one of the most profitable cannabis consumer packaged goods and retail businesses operating in the U.S. today. Mr. Drexler has over 40 years’ experience in corporate leadership roles as well as serving on several public company boards and audit committees. Mr. Vakili currently serves as Vice President of Strategic Initiatives & Partnerships at Green Thumb and has over a decade of experience in corporate affairs, mergers and acquisitions, private equity and finance.

Krishnan Varier, a member of the Agrify Board, said, “This is great news for Agrify at a time when the Company needed a capital infusion. I am confident that this new investment from Green Thumb and Ben’s leadership will provide Agrify the necessary financing support and operational expertise to help position us for growth and long-term value creation for shareholders. We especially look forward to working with our new Board members, given their proven track records of successes. On behalf of our Board, I want to thank Raymond for his numerous contributions to the Company over the years. He has done a great job preparing us for our next phase of growth and we wish him nothing but the best in his future endeavors.”

Ben Kovler added, “We believe Green Thumb’s financial investment and the new Directors’ experience can help Agrify unlock its untapped potential. Raymond and his team have worked hard to develop world-class proprietary technologies for the cultivation and extraction businesses, and we thank him for his support during this transition. Given Green Thumb’s thoughtful and prudent approach to capital allocation, we see significant opportunity ahead to assist in the creation of value for shareholders via Agrify’s non-plant touching assets. We are excited to be a significant owner of Agrify and I look forward to working with Krish, Brian and team right away.” 

Outgoing CEO, Raymond Chang, commented, “This is a great transaction for all our shareholders and employees. It has been an exciting journey for us, and I am incredibly proud of the entire Agrify team for what we have accomplished. I am confident that Agrify and the team are in experienced hands with its new leadership, and I am looking forward to focusing on my next chapter.”

About Agrify (Nasdaq: AGFY)
Agrify is a leading provider of innovative cultivation and extraction solutions for the cannabis industry, bringing data, science, and technology to the forefront of the market. Agrify’s proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce the highest quality products with unmatched consistency, yield, and ROI at scale. Agrify’s 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 https://agrify.com.

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 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 the expected benefits to be derived from the Green Thumb investment and the addition of new Directors, and Agrify’s growth and future prospects. 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. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. 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 filed for the year ended December 31, 2023 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 Investor Relations
IR@agrify.com
(857) 256-8110


FAQ

What financing did Agrify (AGFY) secure from Green Thumb Industries?

Agrify secured a $20 million convertible secured note from a Green Thumb Industries subsidiary, with $10 million available at closing.

Who is the new Chairman and Interim CEO of Agrify (AGFY)?

Benjamin Kovler, the Founder, Chairman and Chief Executive of Green Thumb Industries, has been appointed as Agrify's Chairman and Interim CEO.

What changes occurred in Agrify's (AGFY) Board of Directors?

Benjamin Kovler, Richard Drexler, and Armon Vakili joined the Board, replacing outgoing directors Raymond Chang and I-Tseng Jenny Chan, bringing total Board membership to six.

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