Agrify's New 10-Year TTK Deal With Mass-Based Kief USA To Yield Over $68.7M In Revenue

Agrify Corporation AGFY, vertically integrated provider of premium cultivation and extraction solutions, announced Monday that it has inked a definitive agreement with its third Massachusetts-based Agrify Total Turn-Key Solution customer, Kief USA, LLC.

Under the terms of the deal, the Billerica Massachusetts-based company enters into a 10-year deal with Kief USA that includes the installation of 485 vertical farming units at Kief USA's 84,000-square-foot facility as well as architectural and engineering services, construction, recurring SaaS revenue, operations consulting and brand licensing.

Once it receives all necessary licenses, Kief USA will be a tier 11 cultivator and manufacturer based in Attleboro, Massachusetts. It will be a fully integrated operator in the cannabis space with additional retail operations.

The partnership is expected to generate over $68.7 million in revenue for Agrify over the first three years of the deal once cultivation starts.

Kief USA agreed to provide 20% of the total $24 million construction cost and 20% of all VFU hardware costs. Agrify, or Agrify's designated financing partner will provide senior financing of the remaining 80% of the construction cost at 16.5% APR within two years following the launch of the first commercial production at the facility.

"We are proud to be expanding the Agrify Total Turn-Key Solution program, and we look forward to working with Kief USA as our third Massachusetts-based TTK partner," Raymond Chang, CEO of Agrify said. "With retail cannabis sales surpassing $2 billion in Massachusetts this year1, I am confident our partnership will result in Kief USA being able to supply consumers with the quality cannabis and consistent experience they've come to demand."

More news from Agrify:

• Blazing a New Trail — Is Agrify Becoming the Cannabis and Hemp Industry's Most Complete Solution Provider?
• Agrify Corp To Enter Arizona Cannabis Market Via Deal With Olive El Mirage
• Nasdaq-Traded Agrify Corp Acquires Cannabis Co.'s Precision Extraction, Cascade Sciences For $50M

AGFY Price Action

Agrify's shares traded 5.83% higher at $21.23 per share at the time of writing Monday morning.

Photo: Courtesy of Agrify Corporation