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.”
