Agrify Corp. (AGFY) Announces 4.02M Share and Warrant Private Placement at $6.80/sh

January 26, 2022 7:03 AM EST
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Agrify Corporation (Nasdaq: AGFY), the most innovative and vertically integrated provider of premium cultivation and extraction solutions for the cannabis and hemp industry, today announced that it has entered into securities purchase agreements with an institutional investor and other accredited investors in a private placement transaction. Under those agreements, the Company will issue and sell 4,020,994 shares of common stock (the “Common Stock”) or, in lieu of Common Stock, pre-funded warrants (the “Pre-Funded Warrants”), and accompanying warrants (the “Warrants”) exercisable six months from closing to purchase up to 3,015,745 shares of Common Stock for a period of five years at an exercise price of $7.48 per share (the “Offering”). The Common Stock and Warrants will be sold at a combined purchase price of $6.80. Members of management and the Board, including Raymond Chang, the Chairman and Chief Executive Officer of the Company, participated in the Offering on the same terms as the other investors except for a combined purchase price of $6.90. The Company expects to receive gross proceeds from the Offering of approximately $27.3 million before deducting placement agent fees and estimated Offering expenses.

A resale registration statement relating to the Common Stock and the shares of Common Stock issuable upon the exercise of the Pre-Funded Warrants and the Warrants will be filed with the Securities and Exchange Commission (the “SEC”) within thirty (30) days of the date hereof.

Craig-Hallum Capital Group LLC is acting as the exclusive placement agent for the Offering.

The Offering is expected to close on or about January 28, 2022, subject to the satisfaction of customary closing conditions.

The Company intends to use the net proceeds from the Offering for general corporate purposes, including, among other things, working capital, product development, acquisitions, capital expenditures, and other business opportunities.

The securities sold in the Offering 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 SEC or an applicable exemption from such registration requirements.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in this Offering. 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.

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