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159 of Agrify’s Vertical Farming Units to be installed at 22,000 square foot facility with over $45.3 million in expected revenue over the next 10 years
BILLERICA, Mass., Aug. 11, 2021 (GLOBE NEWSWIRE) -- Agrify Corporation (NasdaqCM:AGFY) (“Agrify” or the “Company”), a developer of highly advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace, today announced it has signed a definitive agreement (the “Agreement”) with its second Agrify Total Turn-Key Solution (“Agrify TTK Solution”) customer, True House Cannabis LLC (“THC”). THC is a minority-owned cannabis venture and an economic empowerment applicant that has recently applied to become a fully integrated tier-two licensed cultivator in Haverhill, MA, which is located approximately 30 minutes outside the city of Boston. Upon regulatory approval, THC plans to open two retail locations in Haverhill, MA and Methuen, MA.
Under the terms of the Agreement, Agrify will work with THC on the build-out of its 22,000 square foot facility (the “Facility”), including the installation of 159 of Agrify’s Vertical Farming Units (“VFUs”) along with integrated catwalks, integrated grow racks, and pest mitigation solutions. Agrify will also provide senior financing of up to $7 million to fund the construction of the Facility, which is expected to be repaid within 30 months following the commencement of the first commercial production at the Facility. In addition, Agrify will receive fixed SaaS revenue derived from THC’s use of the Agrify Insights™ cultivation software, as well as additional production-based fees and brand licensing fees. The deal is expected to generate up to $45.3 million in revenue over the 10-year contract period.
“We are thrilled to announce our second Agrify TTK partnership, and we are excited to work with the team at True House Cannabis on its new facility,” said Raymond Chang, CEO of Agrify. “We look forward to partnering with THC and supporting its commitment to promote social equity in the cannabis industry, create meaningful employment opportunities in our communities, and address the inequalities that cannabis prohibition has caused.”
Mr. Chang added, “The Agrify TTK Solution was developed to enable partners like THC to access the initial capital required to quickly establish modern cultivation facilities and produce high-quality cannabis at scale using Agrify’s integrated hardware and software solution. THC’s proximity to our Billerica headquarters should enable us to be deeply involved in the initial commissioning phase and the long-term success of this new facility. In addition, we are extremely pleased to see that upon signing the TTK partnership with Agrify, THC received an investment from Win-Light Global Co., Ltd., a successful family office based in Asia currently with more than RMB$1 billion of assets under management.”
“We believe Agrify’s solutions will allow us to produce consistent, premium cannabis products for consumers that will ultimately help us meet our goal to heal communities impacted by the prohibition era,” said Andre Colon, CEO of THC. “This is work that is clearly ongoing. We are proud to have a partner like Agrify that is committed to providing support and extensive training throughout the life of our relationship to assist us in remaining competitive in this maturing market.”
About Agrify (NasdaqCM:AGFY)
Agrify is a developer of premium grow solutions for the indoor agriculture marketplace. The Company uses data, science, and technology to empower its customers to be more efficient, more productive, and more intelligent about how they run their businesses. Agrify’s highly advanced and proprietary hardware and software solutions have been designed to help its customers achieve the highest quality, consistency, and yield, all at the lowest possible cost. For more information, please visit Agrify’s website at www.agrify.com.
About True House Cannabis LLC
True House Cannabis LLC is a social equity cannabis venture that is vertically integrated in Massachusetts. The company has two main objectives: To educate its community on the use of cannabis and to empower and provide opportunities to those who may have been negatively impacted by the stigma surrounding the use of cannabis. The company aims to accomplish its goals by producing and selling high-quality cannabis products, creating a safe and welcoming environment for its customers and its neighbors, and providing consistent and meaningful contributions to the community through collaborations with local organizations.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, concerning Agrify and other matters. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including, without limitation, statements regarding our customer relationship with THC, THC’s efforts to secure the licenses necessary to operate, the revenue expected from the deal, project timelines, and ability to deliver solutions and services. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events as well as the terms and conditions that were mutually agreed upon in the definitive agreements between Agrify and THC. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission (“SEC”), including under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
Chief Financial Officer