Agrify's Shares Slightly Down On Greenlight Cannabis Partnership To Accelerate Vertical Farming Unit Adoption

Agrify Corporation AGFY has signed an agreement with Greenlight Cannabis to provide premium grow solutions and related services for Greenlight’s cultivation facilities. With 28 locations and growing across 5 states, Greenlight is a multi-state operator providing consumers with unique medical cannabis experiences.

Under the terms of the agreement, Agrify will install its latest generation Vertical Farming Units (“VFUs”) in Greenlight’s state-of-the-art cultivation center of excellence, to produce superior yields, consistency, and quality, in grow facilities across multiple states. Following operational acceptance, the agreement is expected to be expanded to include a full facility build-out for Greenlight’s cultivation operations in strategic current locations followed by future locations as Greenlight expands geographically. The initial agreement also includes horticulture and customer success training, ongoing technical and monitoring support, recurring SaaS revenue for use of the Agrify Insights cultivation software, and operations consulting.

“Rapid business growth for MSOs such as Greenlight can cause them to quickly outgrow the facilities in which they’ve already significantly invested in locations where they desire to operate,” Raymond Chang, chief executive officer of Agrify stated. “Purposefully designed to stack up to three levels high, cultivators can increase their grow canopy up to six times within the same building footprint providing increased profitability and longevity of building facilities. As the most technologically advanced cannabis cultivation solution commercially available today, Agrify's cutting-edge VFUs not only deliver MSOs such as Greenlight maximum grow canopy for rapid ROI, but also the unrivaled consistency and quality of biomass necessary to produce premium experiences for their end customers every time. "

Price Action

Agrify shares were trading 5.16% lower at $3.77 per share at the time of writing Wednesday morning.