Agrify Stock Plunges On Pricing $8.7M Public Offering

Agrify Corporation AGFY announced the pricing of its underwritten public offering of (I) around 11.88 million common shares, and, in lieu of common stock to certain investors that so chose, pre-funded warrants to buy 1.5 million shares of its common stock, and (ii) accompanying warrants to buy 26.77 million shares of its common stock.

The shares of common stock (or pre-funded warrants) and the accompanying common warrants will be issued separately but can only be purchased together in the offering. The combined public offering price for each share of common stock and accompanying two common warrants is $0.65, and the combined offering price for each pre-funded warrant and accompanying two common warrants is $0.649, which equals the public offering price per share of the common stock and accompanying two common warrants, less the $0.001 per share exercise price of each pre-funded warrant.

The aggregate gross proceeds from the offering are expected to be around $8.7 million, before deducting the underwriting discounts and commissions and estimated offering expenses payable by Agrify. All of the securities in the offering will be sold by Agrify. The offering is expected to close on December 20, 2022, subject to the satisfaction of customary closing conditions.

The company plans to use the net proceeds from the offering for working capital and general corporate purposes, which may include capital expenditures and repayment of debt.

Canaccord Genuity is acting as the sole bookrunner for the offering.

Price Action 

Agrify shares traded 48.54% lower at 42 cents per share during Friday's pre-market session.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Related Links:

Agrify Stock Drops On Q3 Results: Sales Decline 55.4% YoY, Lowers Revenue Guidance

Agrify Prevents Hostile Takeover By Diluting Its Stock By Almost 70%

Photo: Courtesy of Washarapol D BinYo Jundang on Pexels