Cannabis-focused hardware and software cultivation solutions developer Agrify Corporation AGFY has signed a binding letter of intent to acquire PurePressure, the leader in solventless extraction and advanced ice water hash processing in the cannabis and hemp industry.
Deal Details
Under the terms of the agreement, the Billerica, Massachusetts-based company agreed to acquire PurePressure for $9 million.
The sum includes $4 million in cash and $5 million in unregistered shares of Agrify common stock, subject to customary adjustments.
An additional earnout opportunity can bring the total purchase price up to $12 million if PurePressure achieves certain financial milestones in 2022 and 2023.
What It Means For Agrify
The acquisition is expected to bolster its expanding extraction division by adding best-in-class solutions to its product mix in two of the fastest-growing subcategories in the cannabis and hemp extraction market.
The Denver, Colorado-based PurePressure offers premium solventless processing products and rosin presses to support any operation, big or small. Its annual revenue for 2021 is currently projected to be approximately $10 million.
What's Next?
The transaction is expected to close by the year's end and become accretive in early 2022.
"We believe superior extraction solutions will be at the core of producing high-quality medical and recreational consumer products consistently, and the expected addition of PurePressure will make Agrify the number one source for the finest extraction solutions on the market in the cannabis and hemp industry" Raymond Chang, chairman and CEO of Agrify said.
Ben Britton, co-founder and CEO of PurePressure, said that "becoming part of Agrify's platform will provide PurePressure with the valuable resources needed to accelerate our growth and support our product development initiatives."
More recent news from Agrify:
Cannabis Earnings: Agrify Q3 Sales Spike 460% YoY, Raises F21 Sales Guidance to $60M-$62M
Agrify's New 10-Year TTK Deal With Mass-Based Kief USA To Yield Over $68.7M In Revenue
Agrify Corp To Enter Arizona Cannabis Market Via Deal With Olive El Mirage
AGFY Price Action
Agrify's shares traded higher at $14.51 per share during the pre-market session on Wednesday morning.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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