Agrify Completes Acquisition of PurePressure, the Leader in Solventless Extraction and Advanced Ice Water Hash Processing, Two of the Fastest Growing Segments within the Extraction Market
05 January 2022 - 11:00PM
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 completed its acquisition of
PurePressure, the leader in solventless extraction and advanced ice
water hash processing equipment in the cannabis and hemp industry.
With the acquisition of PurePressure, Agrify has strengthened
its rapidly expanding extraction division by adding best-in-class
solutions to its product portfolio in two of the fastest growing
subcategories in the cannabis and hemp extraction market. In
addition to its other extraction solutions, Agrify can now offer
its customers premium solventless processing products and rosin
presses to support any operation, big or small. The Company also
inherits PurePressure’s intellectual property, talent, and stellar
reputation for quality, reliability, precision, control, and
exceptional customer service. PurePressure’s annual revenue for
2021 is approximately $10 million, and the acquisition is expected
to be accretive in early 2022. By combining PurePressure with
Precision Extraction Solutions and Cascade Sciences, two other
recent acquisitions made by Agrify, the Company has formed the
largest and the most powerful cannabis and hemp extraction solution
provider in the world.
“We are thrilled to be able to officially welcome PurePressure
to the Agrify family. PurePressure is the perfect complement to our
extraction division, which has quickly become a core part of our
business and our plans to accelerate our growth,” said Raymond
Chang, Chairman and CEO of Agrify. “Within a short amount of time,
we have assembled the best extraction talent in the industry and
what we believe is the most compelling, complete, and advanced
product offerings in the extraction space, effectively doubling
down on our assertion that superior extraction technology will play
a critical role in producing high-quality medical and recreational
consumer products consistently. We look forward to providing our
customers with the most comprehensive suite of solutions on the
market, and we expect our extraction division will play a pivotal
role in helping us capitalize on a variety of new growth
initiatives that we hope to pursue in 2022 and beyond.”
Mr. Chang continued, “This strategic acquisition is also an
important step toward achieving our broader vision of becoming the
most dynamic solution provider across the entire supply chain in
the cannabis and hemp industry. Through this acquisition, we have
substantially bolstered our competitive position in the market, and
we are confident that this will greatly enhance shareholder
value.”
“We are excited to join Agrify, an organization we have long
admired, at such a critical inflection point,” said Ben Britton,
Co-Founder and CEO of PurePressure. “During the acquisition
process, we spent a considerable amount of time getting to know
Agrify’s leadership team, gaining visibility into the intended path
forward, and determining how we could work together to build a
dominant force in the cannabis and hemp industry. While we have
always believed in ourselves and what we have worked tirelessly to
build over the last six years, we now have the opportunity to
leverage new synergies, capabilities, and resources in order to
drive a much greater impact across the cannabis and hemp
ecosystem.”
Agreement Details
The purchase price for PurePressure was $9 million, consisting
of $4 million in cash and $5 million in unregistered shares of
Agrify common stock, subject to adjustments as set forth in the
definitive agreement. There is also an additional earnout
opportunity of up to $3 million if the PurePressure business
achieves certain revenue milestones in 2022 and 2023. The
definitive agreement includes customary representations,
warranties, and covenants regarding PurePressure and Agrify.
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.
About PurePressure
PurePressure is the leader in solventless extraction and
advanced ice water hash processing equipment in the cannabis and
hemp industry. The company offers premium solventless processing
products and rosin presses to support any operation, big or small,
and it has a legendary reputation for reliability, precision,
control, and exceptional customer service. For more information,
please visit PurePressure at https://gopurepressure.com/.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
concerning Agrify, PurePressure, 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 expected
results of the combination of Agrify and PurePressure; future
prospects; and financial performance. 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 and financial trends that we
believe may affect our business, financial condition and results of
operations. 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 filed for
the year ended December 31, 2020 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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