485 of Agrify’s Vertical Farming Units to be installed at 84,000-square-foot facility with over $68.7 million in revenue expected over the first three years of cultivation
BILLERICA, Mass., Nov. 08, 2021 (GLOBE NEWSWIRE) — Agrify Corporation (Nasdaq:AGFY) (“Agrify” or the “Company”), a vertically integrated provider of premium cultivation and extraction solutions for the cannabis and hemp industry, today announced it has signed a definitive agreement (the “Agreement”) with its third Massachusetts-based Agrify Total Turn-Key Solution (“Agrify TTK Solution”) customer, Kief USA, LLC (“Kief USA”). Kief USA will be a tier 11 cultivator and manufacturer based in Attleboro, Massachusetts, and will be a fully integrated operator in the cannabis space with additional retail operations, following the receipt of all necessary licenses.
Under the terms of the Agreement, Agrify has entered into a 10-year deal with Kief USA that includes the installation of 485 Vertical Farming Units (“VFUs”) at Kief USA’s 84,000-square-foot facility, as well as architectural and engineering services, construction, recurring SaaS revenue, operations consulting, and brand licensing. Kief USA will be providing 20% of the total $24 million construction cost, with Agrify, or Agrify’s designated financing partner, to provide senior financing of the remaining 80% of the construction cost at 16.5% APR, which will be repaid within 24 months following the commencement of the first commercial production at the facility. Kief USA has also committed to contribute 20% of all VFU hardware costs. The partnership is expected to generate over $68.7 million in revenue for Agrify over the first three years of the deal once cultivation starts.
“We are proud to be expanding the Agrify Total Turn-Key Solution program, and we look forward to working with Kief USA as our third Massachusetts-based TTK partner,” said Raymond Chang, CEO of Agrify. “With retail cannabis sales surpassing $2 billion in Massachusetts this year1, I am confident our partnership will result in Kief USA being able to supply consumers with the quality cannabis and consistent experience they’ve come to demand. This exciting new addition to our program is expected to further increase our market share and enhance long-term shareholder value.”
“Kief, as a women- and minority-owned family business, will soon call Massachusetts home, and it is only the beginning of our story on the east coast,” said Ali Lee, COO of Kief USA. “Through our partnership with Agrify, we aspire to provide quality product and consistent consumer experiences, with personal service and our community and mother planet at heart.”
