Agrify, a Nasdaq-listed company offering vertical farming solutions, has announced its plans to make Denver Greens the new operating partner through the acquisition of the total turnkey project Greenstone, subject to final approval from the Colorado Marijuana Enforcement Division and execution of documentation.

The Phase 1 construction of Denver Greens' facility, which is approximately 9,000 sq ft and will offer cultivation and extraction services, has been completed. The facility plans to plant 60 of Agrify's double-stacked vertical farming units (VFUs) this spring, with final facility approvals expected to be received by mid-April. 

In addition to cultivation, Denver Greens plans to expand its facility in Phase 2 and utilize Agrify's extraction solutions to create new products, including solventless and hydrocarbon-extracted products. The expansion is anticipated to begin delivering SaaS revenue in Q3 2023 and production success fees in 2024.

Denver Greens has signed a distribution agreement with Kush Masters, a reputable supplier of cannabis products in Colorado, allowing Denver Greens to sell some of their VFU-grown cannabis as pre-rolled joints and flowers in approximately 350 dispensaries across the state.

Analyst QuickTake: Agrify had previously entered several partnerships to supply its total turn-key solution and continues to seek partnerships to expand its market share in the cannabis industry. Notably, the company has partnered with Bud & Mary’s Cultivation (May 2021), True House Cannabis LLC (August 2021), Olive El Mirage Partners LLC (October 2021), Kief USA (November 2021), Gold Leaf Florida LLC (January 2022), and Loud Wellness Inc (April 2022). Additionally, Agrify also signed definitive agreements with Greenlight Cannabis (April 2022).