Agrify Enters Florida Via Deal With Gold Leaf For Its Total Turn-Key Solution

Vertically integrated cannabis company Agrify Corporation AGFY announced Tuesday that it has inked a definitive agreement for its largest Agrify Total Turn-Key Solution partnership to date with Gold Leaf Florida LLC.

What Happened

Under the terms of the 10-year agreement, the Billerica, Massachusetts-based company agreed to install 1,510 of its Vertical Farming Units at Gold Leaf's 200,000-square-foot facility with 100,000 square feet dedicated to VFU cultivation.

In addition, the deal also includes architectural and engineering services, recurring SaaS revenue for the use of Agrify Insights cultivation software, operations consulting and brand licensing. Gold Leaf also has the option to engage with Agrify for construction financing.

Why It Matters?

The deal is expected to generate more than $140 million in revenue for Agrify over the first three years of cultivation and over $400 million of estimated total revenue over the full 10-year term of the partnership.

"We are also excited about entering the robust Florida medical cannabis market, the nation's largest, with a premier partner like Gold Leaf, and we look forward to leveraging our position for additional growth opportunities in this highly attractive market," said Raymond Chang, the company's chairman and CEO.

Gold Leaf is one of only 22 licensed centers and one of only 16 active operators in Florida.

Chang called the partnership "a milestone achievement that represents even further validation of our novel TTK program given the scale and economic value of this customer engagement."

What's Next?

Gold Leaf plans to build four additional 200,000-square-foot facilities in Florida for a total of one million square feet; Agrify intends to support Gold Leaf through this anticipated future growth with the installation of several thousand more VFUs. In addition, the organization also intends to launch 20 dispensaries in the state by 2024.

Chang believes that Agrify will "play an instrumental role" in supporting Gold Leaf's team.

Mark Seid, executive vice president of Gold Leaf, said that Agrify's TTK program will "enable us to provide quality product and consistent patient experiences that will give us the competitive edge needed to remain a leader in Florida's growing medical cannabis market."

More recent news from Agrify:

• Agrify Corp To Buy Denver-Based Solventless Extraction Equipment Manufacturer For $9M
• 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

AGFY Price Action

Agrify's shares traded 12.11% higher at $10.83 per share during the pre-market session on Tuesday morning.

Photo: Courtesy of Richard T on Unsplash