Agrify, a US-listed company offering vertical farming solutions, has announced signing a binding letter of intent to acquire PurePressure, a US-based manufacturer of solventless extraction equipment in the cannabis and hemp industry, for USD 9 million. The deal consists of USD 4 million cash, with the remainder paid out via Agrify common stock. The deal is expected to close by Q4 2021 upon customary closing conditions and negotiations. 

The acquisition also comprises an additional earnout opportunity that could bring the deal value up to USD 12 million if PurePressure meets the necessary financial milestones in 2022 and 2023. 

Some of the Colorado-based PurePressure’s technology includes rosin presses (a wax press), hash washing vessels (stirring and churning process to remove Trichomes from the plant), and sifters (for extraction and sorting). To date, the company has served over 7,000 customers and expects to generate USD 10 million in revenue in 2021. 

Via the acquisition, Agrify will be able to accelerate the expansion of its extraction division by incorporating PurePressure’s technology and strengthening its expertise in the cannabis and hemp extraction market.  

For PurePressure, the acquisition is likely to give them the necessary resources to advance product development and growth.