Agrify

Agrify produces proprietary growing solutions (hardware and software) for the indoor farming industry. It offers three main products: a precision elevated cultivation solution, a vertical farming unit, and grow room automation software. The company also launched two new products to supplement its product offering during Q2 2022 : 1) VFU Rapid Deployment Packs to adopt VFU tech without major building renovations and 2) PX5, a passive hydrocarbon extractor product. 

The product development and expansion in its solvent separation and extraction division was possible due to Agrify’s acquisition of a US-based manufacturer of solventless extraction equipment PurePressure and Lab Society, another distillation and solvent solutions provider for the cannabis and hemp industry in February 2022. To expand its cannabis and hemp supply chain operations, Agrify acquired Precision Extraction Solutions and Cascade Sciences, two leading brands in the cannabis and hemp industry providing solutions for extraction, post-processing, and testing during 2021. 

Key Customers and Partnerships

As of May 2022, Agrify had signed six customer partnerships to supply its Total Turn-Key solution: 

1) Bud & Mary’s Cultivation Inc ., to install up to 1,200 of Agrify’s Vertical Farming Units (VFUs), which are estimated to generate more than USD 28 million in revenue annually (more than twice the company’s FY2020 revenue) (May 2021)

2) True House Cannabis LLC, to build 159 VFUs and a total revenue opportunity of around USD 45.3 million over the following 10 years. (August 2021)

3) Olive El Mirage Partners LLC , to install 400 VFUs with a total deal value of USD 23.8 million. (October 2021)

4) Kief USA , to install 485 VFUs with a revenue opportunity of over USD 68.7 million over the first 3 years of operation (November 2021)

5) Gold Leaf Florida LLC , to install 1,510 VFUs with revenue opportunity of over USD 380 million over the following 10 years 

6) Loud Wellness Inc , a 10-year definitive agreement to install 500 VFUs with a total revenue opportunity of USD 118 million

In addition to TTK partnerships, Agrify signed definitive agreements with Greenlight Cannabis to supply its VFUs at all of Greenlight’s growing facilities (April 2022), Boone Labs to provide cannabis cultivation and extraction solutions for its new production facility, and Ora Pharm to provide end-to-end cultivation and extraction solutions for the latter’s 5,000 sq ft facility in Auckland, New Zealand.

Funding and Financials

In June 2023, Agrify received approval for a 1-for-20 reverse stock split.

In Q1 2022 , Agrify’s revenue grew 271% YoY to USD 26 million, while its adjusted EBITDA loss was USD 6.1 million, 1.5x the loss in Q1 2021. Agrify’s FY 2021 revenue grew nearly 395% year-over-year (YoY) to reach USD 59.9 million, while  operating losses for FY2021 increased 178% YoY, amounting to USD 35 million. 

In December 2020, Agrify filed for an IPO to raise USD 25 million. In January 2021, the company went public on the Nasdaq stock exchange, issuing 5,400,000 shares at USD 10 per share. Agrify had raised USD 135 million in a senior secured note facility from an institutional lender in March 2022 . In August 2022, Agrify restructured the terms of this note for greater flexibility to achieve its long-term goals amidst a downturn in the cannabis industry at the time.