Acquisition Positions Agrify as the Largest and the Most Powerful Cannabis and Hemp Extraction Solution Provider in the World
Agrify Corporation (Nasdaq:AGFY) (“Agrify” or the “Company”), the most innovative and vertically integrated provider of premium cultivation and extraction solutions for the cannabis and hemp industry, today announced it has completed its acquisition of PurePressure, the leader in solventless extraction and advanced ice water hash processing equipment in the cannabis and hemp industry.
With the acquisition of PurePressure, Agrify has strengthened its rapidly expanding extraction division by adding best-in-class solutions to its product portfolio in two of the fastest growing subcategories in the cannabis and hemp extraction market. In addition to its other extraction solutions, Agrify can now offer its customers premium solventless processing products and rosin presses to support any operation, big or small. The Company also inherits PurePressure’s intellectual property, talent, and stellar reputation for quality, reliability, precision, control, and exceptional customer service. PurePressure’s annual revenue for 2021 is approximately $10 million, and the acquisition is expected to be accretive in early 2022. By combining PurePressure with Precision Extraction Solutions and Cascade Sciences, two other recent acquisitions made by Agrify, the Company has formed the largest and the most powerful cannabis and hemp extraction solution provider in the world.
“We are thrilled to be able to officially welcome PurePressure to the Agrify family. PurePressure is the perfect complement to our extraction division, which has quickly become a core part of our business and our plans to accelerate our growth,” said Raymond Chang, Chairman and CEO of Agrify. “Within a short amount of time, we have assembled the best extraction talent in the industry and what we believe is the most compelling, complete, and advanced product offerings in the extraction space, effectively doubling down on our assertion that superior extraction technology will play a critical role in producing high-quality medical and recreational consumer products consistently. We look forward to providing our customers with the most comprehensive suite of solutions on the market, and we expect our extraction division will play a pivotal role in helping us capitalize on a variety of new growth initiatives that we hope to pursue in 2022 and beyond.”
Mr. Chang continued, “This strategic acquisition is also an important step toward achieving our broader vision of becoming the most dynamic solution provider across the entire supply chain in the cannabis and hemp industry. Through this acquisition, we have substantially bolstered our competitive position in the market, and we are confident that this will greatly enhance shareholder value.”
“We are excited to join Agrify, an organization we have long admired, at such a critical inflection point,” said Ben Britton, Co-Founder and CEO of PurePressure. “During the acquisition process, we spent a considerable amount of time getting to know Agrify’s leadership team, gaining visibility into the intended path forward, and determining how we could work together to build a dominant force in the cannabis and hemp industry. While we have always believed in ourselves and what we have worked tirelessly to build over the last six years, we now have the opportunity to leverage new synergies, capabilities, and resources in order to drive a much greater impact across the cannabis and hemp ecosystem.”
Agreement Details
The purchase price for PurePressure was $9 million, consisting of $4 million in cash and $5 million in unregistered shares of Agrify common stock, subject to adjustments as set forth in the definitive agreement. There is also an additional earnout opportunity of up to $3 million if the PurePressure business achieves certain revenue milestones in 2022 and 2023. The definitive agreement includes customary representations, warranties, and covenants regarding PurePressure and Agrify.
