Agrify Announces Entry into Arizona Cannabis Market through Partnership with Olive El Mirage
400 of Agrify’s Vertical Farming Units to be installed at 30,000-square-foot facility with potential for the deal’s value to be approximately $23.8 million
BILLERICA, Mass., Oct. 28, 2021 (GLOBE NEWSWIRE) -- Agrify Corporation (Nasdaq: AGFY) (“Agrify” or the “Company”), a 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”) with its first Arizona-based customer, Olive El Mirage Partners LLC (“Olive El Mirage”). Olive El Mirage is a contract cultivation operation working with the top consumer brands in the fast-growing Arizona market.
Under the terms of the Agreement, Agrify will work with Olive El Mirage on the build-out of its 30,000-square-foot facility (the “Facility”), including the installation of 400 of Agrify’s Vertical Farming Units (“VFUs”) along with integrated catwalks, integrated grow racks, and pest mitigation solutions. The deal value is expected to be approximately $23.8 million, which includes $9.4 million for the purchase of 400 VFUs and recurring SaaS revenue at a value of $14.4 million derived from Olive El Mirage’s use of the Agrify Insights cultivation software over 10 years. Both parties also agree that Olive El Mirage will have up to 90 days to determine whether to proceed with a cash purchase of the VFUs or finance this transaction. Olive El Mirage will cover the cost of the construction and facility build-out with its own internal capital.
“I am delighted to announce that we have entered into the Arizona cannabis market, through our new partnership with Olive El Mirage” said Raymond Chang, CEO of Agrify. “We look forward to bringing our unparalleled end-to-end solution to Arizona, which we expect will allow Olive El Mirage to get to market faster through the production of consistent high-quality products for discerning Arizona consumers, driven by industry-leading technology.”
“We believe our partnership with Agrify will give us the potential to develop deeper long-term customer relationships earlier in our lifecycle, by delivering high-quality products at an optimized yield with unparalleled consistency at a significantly lower cost,” said Alexander Catucci, CEO of Olive El Mirage. “We look forward to beginning our partnership with Agrify, and to establishing ourselves as the market leader of premium cannabis products in Arizona.”
About Agrify (Nasdaq: AGFY)
Agrify is a 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.
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 our customer relationship with Olive El Mirage, Olive El Mirage’s efforts to secure the licenses necessary to operate, the revenue expected from the deal, project timelines, and our 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 Olive El Mirage. 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.
Chief Financial Officer