Agrify Corporation Announces Approximately $13.8 Million Debt-to-Equity Conversion
May 22 2024 - 7:30AM
Agrify Corporation (Nasdaq: AGFY) (“Agrify” or the “Company”), a
leading provider of innovative cultivation and extraction solutions
for the cannabis industry, today announced an approximately $13.8
million debt-to-equity conversion by CP Acquisitions, LLC and GIC
Acquisitions LLC. As a result of the conversion, the Company is
expected to regain compliance with Nasdaq’s Listing Rule, achieving
stockholder’s equity of at least $2.5 million as of the date of
conversion.
In connection with the conversions, CP
Acquisitions, LLC (“CP”), an entity affiliated with and controlled
by Raymond Chang, the Chairman and Chief Executive Officer of the
Company, and I-Tseng Jenny Chan, a member of Agrify’s Board of
Directors, converted $11.5 million of its senior convertible note
into a Pre-Funded Warrant exercisable at issuance for up to
8,561,644 shares of common stock. GIC Acquisitions LLC (“GIC”), an
entity affiliate with and controlled by Mr. Chang, converted
approximately $2.29 million of its junior secured note into a
Pre-Funded Warrant exercisable at issuance for up to 3,225,807
shares of common stock. Each Pre-Funded Warrant includes adjustment
provisions in the event that Agrify conducts any equity financing
during the twelve month period following conversion, subject to
shareholder approval.
As a result of the conversions, the Company
believes that its shareholders’ equity exceeds $2.5 million, which
would allow the Company to regain compliance with Nasdaq Listing
Rule 5550(b)(1). Raymond Chang, Chairman and Chief Executive Office
of Agrify, stated “I am very pleased to see the continuous
turnaround in Agrify. The decision to convert a substantial portion
of the senior debt shows the management and the shareholders’
commitment to the future of Agrify. We are excited to see the
strong positive momentum in our business across both the extraction
and cultivation divisions. We believe this large debt conversion
allows Agrify to meet the minimum shareholders’ equity requirement
under Nasdaq continued listing rules and provides Agrify with a
cleaner and positive balance sheet to fuel our future growth. We
remain focused on executing the Company’s turnaround.”
About Agrify (Nasdaq:AGFY)
Agrify is a leading provider of innovative
cultivation and extraction solutions for the cannabis industry,
bringing data, science, and technology to the forefront of the
market. Agrify’s proprietary micro-environment-controlled Vertical
Farming Units (VFUs) enable cultivators to produce the highest
quality products with unmatched consistency, yield, and ROI at
scale. Agrify’s comprehensive extraction product line, which
includes hydrocarbon, ethanol, solventless, post-processing, and
lab equipment, empowers producers to maximize the quantity and
quality of extract required for premium concentrates. For more
information, please visit Agrify at http://www.agrify.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 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 the
ability to regian compliance with Nasdaq listing rules, Agrify’s
future growth, and Agrify’s 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 and financial trends that we believe may affect
our business, financial condition and results of operations.
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 filed for the year ended
December 31, 2023 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.
Company Contacts
Agrify Investor
RelationsIR@agrify.com(857) 256-8110
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