Projects in Illinois, Massachusetts, and South Africa Expected to Generate Over $7.5 Million in Cultivation-Related Hardware Sales with Additional Recurring SaaS and Production Success Fees
BILLERICA, Mass., Oct. 06, 2022 (GLOBE NEWSWIRE) -- Agrify Corporation (Nasdaq:AGFY) (“Agrify” or the “Company”), a leading provider of innovative cultivation and extraction solutions for the cannabis industry, today announced that Prairie State Cannabis LLC in Illinois, LowKey LLC in Massachusetts, and MediFlora Cultivation LTD in South Africa have all elected to operate their respective cultivation businesses using Agrify’s Rapid Deployment Packs (“RDPs”), further validating the attractiveness and appeal of this first-of-its-kind offering.
Agrify’s RDP program was established earlier this year to make it easier for a broader range of customers to access Agrify’s award-winning cultivation technology. Featuring Agrify’s flagship Vertical Farming Units (“VFUs”) in a prepackaged, self-contained, and quick-to-deploy format, the thoughtfully designed and engineered RDPs offer an accelerated path to production, cash flow, and profitability for customers. By removing certain barriers and points of friction with the RDPs, Agrify is able to provide customers who have properly equipped facilities best-in-class cultivation capabilities in potentially as little as 60-90 days. Once installed, the modular nature of the RDPs allows for seamless expansion opportunities, enabling customers the flexibility to grow and scale.
As per the terms of the RDP agreements with Prairie State Cannabis LLC, LowKey LLC, and MediFlora Cultivation LTD, the combined agreements have an expected base value of over $7.5 million in cultivation-related hardware sales, and additionally include future recurring SaaS and production success fees. Agrify will initially be providing each customer with an RDP configuration consisting of 56 VFUs. With this infrastructure, each customer will have the potential to produce an estimated 7.5 pounds of premium quality flowers per VFU, per grow cycle, with approximately 5.2 grow cycles expected to be possible each year.
"At Agrify, we pride ourselves on being able to serve the needs of a wide range of cannabis customers with our cutting-edge solutions and complementary services at any stage of growth, both domestically and internationally," said Raymond Chang, Chairman and Chief Executive Officer of Agrify. "Through our unwavering commitment to continuous innovation and bringing new technologies to market, the RDP program was launched to increase customer access to our VFUs and Agrify Insights cultivation software, while also providing us with a means to further increase our installed base.”
Mr. Chang continued, “Through these new RDP customer engagements, we are excited to support a traditional outdoor farm in Illinois in its quest to expand its current operations through the introduction of indoor cultivation and extraction solutions, a minority-owned social equity dispensary and cultivation business in our home state of Massachusetts that is attempting to elevate the consumer experience in a historically disadvantaged community, and a South African enterprise aspiring to produce the highest quality pharmaceutical cannabis at a low production cost per gram. While these customers come from different backgrounds, serve different markets, and have different operating objectives, it is especially humbling to know that they are unified by their shared trust and belief in our team and our cultivation and extraction solutions. We greatly appreciate the opportunity, through our innovative solutions, to help our customers get to market quickly, efficiently, and with a strong sense of purpose. We are also excited for the opportunity to bring our RDP program to even more customers throughout the world.”
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. Our proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce the highest quality products with unmatched consistency, yield, and ROI at scale. Our 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.
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 expected revenue to be generated from the RDP arrangements, the expected timeline for cultivation capabilities using RDPs, the expected productivity and grow cycle frequency of VFU systems, the expected benefits from Agrify’s products, and Agrify’s ability to deliver solutions and services, including the development of new solutions. 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, 2021 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.
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