Agrify Corporation (Nasdaq:AGFY)(“Agrify” or the “Company”), the most innovative provider of advanced cultivation and extraction solutions for the cannabis industry, announced it has signed a definitive agreement with BioCann Pharmaceutical Company, LDA, a prominent cannabis cultivator located on the island of Madeira, in Funchal, Portugal.
Liberalization and legalization of cannabis continues accelerating across Europe with experts projecting the European cannabis market to reach $37 billion (USD) by 2027 as reported by Visual Capitalist. Located in Portugal with easy access to distribution routes throughout Europe, BioCann is well positioned to quickly accelerate its growth throughout the region. Medical use specifically has been a driving force in the push toward legalization with pilots now active in France, Germany, United Kingdom, Denmark, Ireland, and Luxemburg requiring pharmaceutical levels of quality and consistency in cannabinoids. By employing Agrify’s Vertical Farming Units (“VFUs”) with the fully integrated Agrify Insights™ software, BioCann will have precise control over its cultivation operation along with the accompanying data to prove active ingredient levels, producing consistent high quality cannabis with exceptional ROI.
Under the terms of the Agreement, Agrify will install 190 VFUs for BioCann’s 25,000 sq. ft. state-of-the-art cultivation facility along with access to the Agrify Insights cultivation software. BioCann will be purchasing Agrify’s cultivation equipment for $4 million, and a 5-year SaaS agreement for Agrify Insights for $2.1 million. The first set of 10 VFUs will be installed in the next 3 months, with the remaining 180 units scheduled for Q1, 2023.
“We are thrilled to begin introducing our advanced cultivation and extraction solutions to the European market through our customer engagement with BioCann,” said Raymond Chang, CEO of Agrify. “With many countries moving towards legalization and the European cannabis market being one of the largest in the world, the European Union represents a significant market opportunity for Agrify and we look forward towards additional international expansion.”
“BioCann is a new type of medical cannabis company led by knowledge and passion where we believe the application of technology can revolutionize the reach and application of cannabis for medicinal purposes,” said Manuel Luis Pereira, CEO of BioCann Pharmaceutical Company, LDA. “We are driven by a yearning to heal the sick and delivering on that commitment demands an accumulation of knowledge spearheaded by an extensive research and development process. It was clear to us that Agrify shared a complementary vision, and we look forward to using Agrify’s solutions to deliver on this promise.”