Agrify Corporation announces a $25.9 million private placement, using proceeds for corporate purposes and business development.
Quiver AI Summary
Agrify Corporation has announced a private placement of securities, raising approximately $25.9 million by selling shares at $22.30 each to institutional and accredited investors. The proceeds will be used for general corporate purposes, including working capital and business development. The placement is expected to close on November 21, 2024, pending customary closing conditions. Chairman and Interim CEO Benjamin Kovler participated by purchasing 10,000 shares at a higher price, emphasizing the significance of this funding for the company and its shareholders. Investors will receive pre-funded warrants to maintain ownership limits, and the securities are not registered under the Securities Act. Agrify, known for its innovative solutions in the cannabis and hemp industries, continues to pursue growth opportunities, including an upcoming transaction.
Potential Positives
- Agrify successfully raised approximately $25.9 million through a non-brokered private placement, enhancing its financial resources for operational needs.
- The participation of Chairman and Interim CEO Benjamin Kovler in the private placement demonstrates insider confidence in the company's future prospects.
- The funds will be allocated to business development and working capital, positioning Agrify to capitalize on market trends in the cannabis and hemp sectors.
- The anticipated closing of the previously announced Señorita transaction indicates ongoing strategic growth initiatives for the company.
Potential Negatives
- Participation of the Chairman and Interim CEO in the private placement at a significantly higher price per share than the public offering could raise concerns about the company's valuation and investor confidence.
- The necessity for pre-funded warrants due to beneficial ownership limits may indicate potential dilution of existing shareholders' equity, which could be perceived negatively by investors.
- The securities sold in the private placement have not been registered under the Securities Act, which may limit liquidity for investors and could be viewed as a potential regulatory risk for the company.
FAQ
What are the key details of Agrify's recent private placement?
Agrify entered a non-brokered private placement priced at $22.30 per share, raising approximately $25.9 million for corporate purposes.
Who participated in the private placement?
Benjamin Kovler, Chairman and Interim CEO, purchased 10,000 shares at a price of $38.76 complying with Nasdaq requirements.
What is Agrify's intended use for the funds raised?
The proceeds will be utilized for general corporate purposes, including working capital and business development opportunities.
When is the private placement expected to close?
The private placement is expected to close on November 21, 2024, pending customary closing conditions being met.
Will warrants be provided to investors in the private placement?
Yes, investors will receive pre-funded warrants to avoid exceeding a beneficial ownership of 4.99% of Agrify's common stock.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$AGFY Insider Trading Activity
$AGFY insiders have traded $AGFY stock on the open market 6 times in the past 6 months. Of those trades, 0 have been purchases and 6 have been sales.
Here’s a breakdown of recent trading of $AGFY stock by insiders over the last 6 months:
- I-TSENG JENNY CHAN has traded it 3 times. They made 0 purchases and 3 sales, selling 203,991 shares.
- RAYMOND NOBU CHANG has traded it 3 times. They made 0 purchases and 3 sales, selling 462,711 shares.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$AGFY Hedge Fund Activity
We have seen 5 institutional investors add shares of $AGFY stock to their portfolio, and 21 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- UBS GROUP AG added 108,068 shares (+1844.2%) to their portfolio in Q3 2024
- HRT FINANCIAL LP removed 52,021 shares (-97.5%) from their portfolio in Q3 2024
- XTX TOPCO LTD removed 40,516 shares (-100.0%) from their portfolio in Q3 2024
- GEODE CAPITAL MANAGEMENT, LLC removed 37,976 shares (-93.4%) from their portfolio in Q3 2024
- TWO SIGMA SECURITIES, LLC added 27,146 shares (+inf%) to their portfolio in Q3 2024
- SUSQUEHANNA INTERNATIONAL GROUP, LLP removed 26,297 shares (-100.0%) from their portfolio in Q2 2024
- VIRTU FINANCIAL LLC removed 19,608 shares (-100.0%) from their portfolio in Q3 2024
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
TROY, Mich., Nov. 21, 2024 (GLOBE NEWSWIRE) -- Agrify Corporation (Nasdaq: AGFY) (“Agrify” or the “Company”), a leading provider of branded innovative solutions for the cannabis and hemp industries, today announced the Company has entered into securities purchase agreements with institutional and accredited investors in a non-brokered private placement priced at $22.30 per share for aggregate proceeds of approximately $25.9 million. The Company intends to use the proceeds from the private placement for general corporate purposes, including, among other things, working capital and business development. The private placement is expected to close on November 21, 2024, subject to the satisfaction of customary closing conditions. Benjamin Kovler, Chairman and Interim Chief Executive Officer, participated in the private placement to purchase 10,000 shares of common stock at a purchase price of $38.76 in compliance with applicable Nasdaq requirements.
“This funding is a strong move for Agrify and our shareholders as we were able to raise approximately $26 million in a non-brokered deal (gross equals net),” said Chairman and Interim CEO Ben Kovler. “We plan to allocate this capital into opportunities within our circle of competence to benefit stockholders. We are excited about the opportunity set and current consumer trends in cannabis and hemp. The team continues to work hard to close the previously announced Señorita transaction, and it remains on track for closing at or around year end.”
Investors in the private placement will receive pre-funded warrants to the extent any investor’s beneficial ownership of Agrify common stock following the offering would exceed 4.99%. The securities sold in the private placement have not been registered under the Securities Act of 1933, as amended, or state securities laws and may not be offered or sold in the United States absent registration with the Securities and Exchange Commission (the “SEC”) or an applicable exemption from such registration requirements. A resale registration statement relating to the common stock and the shares of common stock issuable upon the exercise of the pre-funded warrants will be filed with the SEC within forty-five days of the date when Agrify receives a demand for such registration from the investors.
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in the private placement. There shall not be any sale of these securities in any state or jurisdiction in which such offering, sale, or solicitation would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Agrify (Nasdaq: AGFY)
Agrify Corporation (“Agrify” or the “Company”) is a developer of branded innovative solutions for the cannabis and hemp industries in extraction, cultivation and more. Agrify’s proprietary micro-environment-controlled Vertical Farming Units (VFUs) enable cultivators to produce the highest quality products with unmatched consistency, yield, and return on investment at scale. Agrify’s comprehensive extraction product line, which includes hydrocarbon, ethanol, solventless, post-processing, and lab equipment, empowers producers to maximize the quantity and quality of extract required for premium concentrates. For more information, please visit Agrify 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 future financial results, potential growth opportunities, Agrify’s ability to deliver solutions and services, and the ability to timely satisfy the closing conditions and close the private placement, the use of proceeds from the private placement, and the ability to close the Señorita transaction on a timely basis or at all. 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, 2023 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.
Contact
Agrify Investor Relations
[email protected]
(857) 256-8110