Agrify Corporation (Nasdaq:AGFY) (“Agrify” or the “Company”), the
most innovative and vertically integrated provider of premium
cultivation and extraction solutions for the cannabis and hemp
industry, today announced it has signed a definitive agreement (the
“Agreement”) for its largest Agrify Total Turn-Key Solution
(“Agrify TTK Solution”) partnership to date with Gold Leaf Florida
LLC (“Gold Leaf”), a leading licensed medical marijuana treatment
center based in Myakka City, Florida. The Agreement, which is the
first for Agrify in the flourishing Florida cannabis market, 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.
Gold Leaf is one of only 22 licensed centers and
one of only 16 active operators in Florida, and the organization is
planning to open 20 dispensaries in the state by 2024. Medical
marijuana treatment centers like Gold Leaf are the only businesses
currently authorized to cultivate, process, and dispense low-THC
cannabis and medical marijuana in Florida.
Under the terms of the 10-year Agreement, Agrify will be
installing 1,510 of its Vertical Farming Units (“VFUs”) at Gold
Leaf’s 200,000-square-foot facility, with 100,000 square feet
dedicated to VFU cultivation. Gold Leaf plans to build four
additional 200,000-square-foot facilities in Florida, for a total
of one million square feet, and Agrify hopes to support Gold Leaf
through all of this anticipated future growth with the installation
of several thousand more VFUs. The initial Agreement also includes
architectural and engineering services, recurring SaaS revenue for
use of the Agrify Insights cultivation software, operations
consulting, and brand licensing. Gold Leaf also has the option to
engage with Agrify for construction financing.
Raymond Chang, Chairman and CEO of Agrify, said,
“Our partnership with Gold Leaf is a milestone achievement that
represents even further validation of our novel TTK program given
the scale and economic value of this customer engagement. By
partnering with Gold Leaf in the early stages of their
organization’s cultivation journey, we will play an instrumental
role in helping their team fulfill their mission of supplying the
medical market with the quality cannabis and consistent experiences
patients and physicians have come to demand.”
Mr. Chang continued, “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.”
“We are thrilled that Agrify is committed to providing support
and extensive training throughout the life of our relationship to
ensure we execute against our ambitious growth plans in a
thoughtful, precise, and successful manner,” said Mark Seid,
Executive Vice President of Gold Leaf. “We believe 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.”
About Agrify TTK Solution
The Agrify TTK Solution is a first-of-its-kind
program in which Agrify partners with qualified cannabis and hemp
cultivators in the early phases of their business plans and
provides critical support over a 10-year period, which includes:
access to capital, design and buildout of their cultivation and
extraction facilities, state-of-the-art cultivation and extraction
equipment, process design, training, implementation, data
analytics, and consumer branding.
To date, the Company has contractual commitments
for over 3,000 VFUs that will be powered by the Agrify Insights
SaaS cultivation software as well as the value-added services
mentioned above. Cumulatively, all of the 10-year agreements under
Agrify’s TTK Solution program are currently projected to generate
an estimated $850 million in total revenue.
About Agrify (Nasdaq:AGFY)
Agrify is the most innovative and vertically integrated provider
of premium cultivation and extraction solutions for the cannabis
and hemp industry. Our proprietary micro-environment-controlled
Vertical Farming Units (VFUs) enable our customers to produce the
highest quality products with unmatched consistency, yield, and ROI
at scale. Agrify brings data, science, and technology to its
customers for unparalleled control over cultivation and extraction.
For more information, please visit Agrify
at http://www.agrify.com, and Precision Extraction, a division
of Agrify, at http://www.precisionextraction.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995, Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended,
concerning Agrify and other matters. All statements contained in
this press release that do not relate to matters of historical fact
should be considered forward-looking statements, including, without
limitation, statements regarding the Agrify TTK Solution, our
customer relationship with Gold Leaf, Gold Leaf’s efforts to secure
the licenses necessary to operate, the revenue expected from this
and other Agrify TTK Solution transactions, project timelines, and
Agrify’s ability to deliver solutions and services. In some cases,
you can identify forward-looking statements by terms such as "may,"
"will," "should," "expects," "plans," "anticipates," "could,"
"intends," "targets," "projects," "contemplates," "believes,"
"estimates," "predicts," "potential" or "continue" or the negative
of these terms or other similar expressions. The forward-looking
statements in this press release are only predictions. We have
based these forward-looking statements largely on our current
expectations and projections about future events as well as the
terms and conditions that were mutually agreed upon in the
definitive agreement between Agrify and Gold Leaf. Forward-looking
statements involve known and unknown risks, uncertainties and other
important factors that may cause our actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. You should carefully consider the risks
and uncertainties that affect our business, including those
described in our filings with the Securities and Exchange
Commission (“SEC”), including under the caption “Risk Factors” in
our Annual Report on Form 10-K for the year ended December 31, 2020
filed with the SEC, which can be obtained on the SEC website at
www.sec.gov. These forward-looking statements speak only as of the
date of this communication. Except as required by applicable law,
we do not plan to publicly update or revise any forward-looking
statements, whether as a result of any new information, future
events or otherwise. You are advised, however, to consult any
further disclosures we make on related subjects in our public
announcements and filings with the SEC.
Company Contacts
AgrifyTimothy OakesChief Financial
Officertim.oakes@agrify.com(351) 777-6585
Investor RelationsAnna Kate
HellerICRagrify@icrinc.com
MediaEllen MellodyMATTIO
Communicationsellen@mattio.com
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