Agrify, a Nasdaq-listed company offering vertical farming solutions, has entered warrant inducement letters to raise up to USD 1.84 million in gross proceeds from the exercise of 10,651,430 common stock warrants issued in the company’s public offering in December 2022 or the existing warrants.

On April 18, 2023, Agrify had reduced the exercise price of all existing warrants from USD 0.65 per share to USD 0.1725 per share, and allowed certain investors to exercise 10,651,430 of their existing warrants at the reduced exercise price. The company will issue new warrants to such investors to purchase 200% of the shares exercised, which will become exercisable six months after issuance, have an exercise price of USD 0.1725, and a five-year term from their initial exercise date. If exercised in full, the warrants were expected to result in gross proceeds of USD 1.84 million for the company.

Analyst QuickTake: In 2022, the company raised USD 135 million through a senior-secured note facility , which included a restructuring of the terms to provide greater flexibility during a downturn in the cannabis industry. The company has, however, continued with its expansion plans. Earlier this month, it completed Phase I of Denver Greens' facility and announced plans to expand further in Phase II.