• Agrify, a US-listed company offering vertical farming solutions, has signed a 10-year definitive agreement with Loud Wellness Inc., a New Jersey-based provider of cannabis-based cosmetic products, to provide the latter with its Agrify Total Turn-Key (TTK) solution.

• According to the agreement, Agrify will install 500 vertical farming units (VFUs), along with its Agrify Software, at Loud Wellness’ Glassboro facility. The facility will reportedly have 50,000 sq ft of space for cultivation, 20,000 sq ft for manufacturing, 8,500 sq ft for R&D purposes, and another 50,000 sq ft available for expansion. In addition, Agrify will also provide Loud Wellness with architectural and engineering services, operations consulting, and brand licensing 

• The total revenue opportunity from the deal is expected to be USD 118 million, where Agrify expects to generate USD 100 million in production success fees from the VFUs, and USD 18 million as SaaS revenue over the 10-year period. Agrify may also provide a construction loan of USD 18 million to Loud Wellness upon securing third-party financing.

<ul><li> Analyst QuickTake: Agrify has signed six TTK customer partnerships since the announcement of launching its TTK solution for customers in May 2021 . This is its second TTK customer partnership for the year after Gold Leaf Florida LLC and the first customer in New Jersey. Previous TTK partnerships were focused in Massachusetts and Arizona. Given that Agrify expects a pipeline of revenue opportunities worth USD 571 million this year, we can expect to see more TTK and other customer partnerships during the year.</ul>