Agrify Corporation Announces First Multi-Year and Two-Million Dollar Extraction Managed Services Contract with Customer in Michigan
22 February 2024 - 11:30PM
Agrify Corporation (Nasdaq: AGFY) (“Agrify” or the “Company”), a
leading provider of innovative cultivation and extraction solutions
for the cannabis industry, today announced the signing of a term
sheet with PDS Ventures, LLC (“PDS Ventures” or the “Customer”), a
licensed Michigan operator, to provide PDS Ventures with Agrify’s
multi-year end-to-end managed extraction services (“Managed
Services”).
Agrify’s Managed Services is a first-of-its-kind
program where Agrify leases turnkey extraction and post-processing
lab equipment to qualified operators and provides a full-time
customer success specialist to guide and manage extraction-related
operations for the customer. The customer success specialist will
be on-site at the customer’s facility to provide hands-on support,
training, and guidance on how to adhere to standard operating
procedures of a full suite of extraction equipment. Managed
Services allows Agrify to significantly increase the average
lifetime value of our customers. Instead of just selling the
hardware, this new innovative partnership allows Agrify to invest
alongside qualified operators and enjoy multi-year high margin
revenue. Operators also benefit from Agrify’s professional design,
support, installation, and ongoing training and SOP enforcement to
ensure maximum yield and results.
The multi-year Managed Service contract allows
Agrify to collect a monthly production success fee based on the
actual amount of finished product produced and a monthly management
fee during the duration of the contract term. Agrify could
potentially earn up to $2 million throughout the lifetime of this
multi-year managed service contract with PDS Ventures.
“We are extremely excited to launch our
end-to-end managed service contract with PDS Ventures,” said Brian
Towns, EVP & General Manager of Agrify. “We have been planning
for the launch of this industry-first end-to-end managed extraction
service for some time and it is only possible with the combination
of our proprietary managed software and the multiple extraction
solutions now under Agrify. Together, we believe PDS Ventures will
become one of the most successful extraction operators in the State
of Michigan.”
PDS Ventures has signed a 3-year contract with
Agrify and together, Agrify and PDS have elected to deploy Agrify’s
PX10 Hydrocarbon Extraction System, Hydrocarbon Distillation Unit
(HDU), and Diamond Miner from Precision Extraction. The
post-processing capabilities have been enhanced by the selection of
a HIVE15 Thin Film Distillation System from Lab Society, and to
scale solventless processing, the Axis Trichome Separator turn-key
package which includes a Pikes Peak Rosin Press.
"We are confident that Agrify's Managed Services
program will be a game-changer for our business," said Daniel
Yatooma, Partner at PDS Ventures. "With Agrify's expertise and
support, we are excited to expand our extraction capabilities and
bring even higher-quality products to our customers.”
For information about Agrify’s managed services
program, please reach out to sales@agrify.com to learn more.
About Agrify
Agrify is a leading provider of innovative
cultivation and extraction solutions for the cannabis industry,
bringing data, science, and technology to the forefront of the
market. Our proprietary micro-environment-controlled Vertical
Farming Units (VFUs), enable cultivators to produce the highest
quality products with unmatched consistency, yield, and ROI (return
on investment) at scale. Our comprehensive extraction product line,
which includes hydrocarbon, ethanol, solventless extraction,
post-processing, and lab equipment, empowers producers to maximize
the quantity and quality of extract required for premium
concentrates. For more information, please visit our website at
http://www.agrify.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 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
entry into definitive agreements regarding the managed services
contract with PDS Ventures and the receipt of the lifetime of
revenue from the agreements. 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 for the
year ended December 31, 2022 that was filed with the SEC on
November 28, 2023, 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.
Agrify Investor Relations
IR@agrify.com(857) 256-8110
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