Agrify Company has accomplished the sale of its cultivation enterprise to CP Acquisitions LLC, an organization affiliated with Agrify’s former CEO, Raymond Chang.
The deal, finalized on December 31, 2024, marks a strategic pivot for Agrify because it shifts its focus towards the rising marketplace for hemp-derived THC drinks.
The transaction concerned the sale of all cultivation-related belongings, together with Agrify’s Vertical Farming Items (VFUs), total-turnkey resolution belongings, and Agrify Insights software program.
CP additionally assumed liabilities associated to the cultivation enterprise, together with the termination of two convertible notes value roughly $7 million. The transfer simplifies Agrify’s operations, permitting it to focus on high-growth areas resembling hemp-derived Delta 9 THC drinks.
“We’re happy to finish the sale of Agrify’s cultivation enterprise and simplify our focus,” mentioned Ben Kovler, Agrify’s Chairman and Interim CEO. “This shift permits us to prioritize enticing development classes tied to THC demand, like our award-winning Señorita THC drinks.”
This transition aligns with Inexperienced Thumb Industries’ (OTC: GTBIF) strategic curiosity in Agrify’s extraction division.
In November, GTI, which can be run by Kolver, acquired a stake in Agrify via a convertible word deal.
Kovler emphasised the worth of Agrify’s extraction capabilities whereas expressing restricted curiosity in its cultivation enterprise. The sale of cultivation belongings to CP reinforces GTI’s give attention to high-end extraction merchandise, notably within the premium focus market.
Agrify’s divestiture comes alongside its acquisition of Double or Nothing, the maker of the Señorita model, as a part of an all-stock transaction earlier in 2024.
Raymond Chang, now heading the cultivation enterprise underneath CP Acquisitions, expressed optimism in regards to the future. “The separation of enterprise segments permits each events to raised focus their efforts,” he mentioned.
