Agrify To Raise $27.3M Selling Units At $6.80, CEO Takes Part In The Offering

Agrify Corporation AGFY announced a $27.3 million private placement. The company has signed a securities purchase agreement with an institutional investor and other accredited investors in a private placement transaction. Under the agreements, Agrify will issue and sell 4.02 million shares, in lieu of common stock, pre-funded warrants, and accompanying warrants exercisable six months from closing to buy up to 3.02 million shares for a period of five years at an exercise price of $7.48 per share. Shares and warrants will be sold at a combined purchase price of $6.80.

Members of management and the board, including Raymond Chang, the chairman and CEO of the Massachusetts-based company, participated in the offering on the same terms as the other investors except for a combined purchase price of $6.90.

Agrify expects to receive gross proceeds from the offering of approximately $27.3 million before deducting placement agent fees and estimated offering expenses. The company plans to utilize the collected net proceeds from the offering for standard corporate activities, like working capital, product development and acquisitions, among others.

Craig-Hallum Capital Group LLC is acting as the exclusive placement agent for the offering, which is expected to close on or about January 28, 2022.

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Price Action

Agrify shares were trading 1.64% higher at $6.19 during Thursday's pre-market session.

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