Agrify Announces Completion of $25.9 Million Non-Brokered Private Placement

Agrify Corporation (NASDAQ: AGFY) recently finalized Securities Purchase Agreements with institutional and accredited investors for a non-brokered private placement transaction. The deal involved the sale of 203,988 shares of the company’s common stock, as well as pre-funded warrants allowing the purchase of up to 949,515 shares of Common Stock. These securities were offered at a purchase price of $22.30 per share and $22.2999 per Pre-Funded Warrant, with an estimated total proceeds of roughly $25.9 million.

The purchase agreements, led by Agrify Corporation, aim for the closing of the sales, which are anticipated to occur around November 21, 2024, pending the fulfillment of usual closing conditions. Notably, Benjamin Kovler, serving as Chairman and Interim Chief Executive Officer of Agrify, participated in the private placement by acquiring 10,000 shares under the same terms, except for a slight variation in the purchase price due to Nasdaq listing rules.

The stated proceeds from this private placement are expected to support Agrify’s general corporate objectives, including working capital needs and business expansion. To adhere to applicable regulations and rules, the shares, Pre-Funded Warrants, and the resulting common stock will be issued without registration under the Securities Act of 1933, relying on specific exemptions for private placements and sales to accredited investors.

In parallel with the private placement, Agrify Corporation and the participating investors have inked Registration Rights Agreements. These agreements stipulate that Agrify must file a registration statement with the Securities and Exchange Commission within 45 days upon the majority demand of the investors to register the aforementioned shares for resale.

It is important to note that all representations, warranties, and covenants in the Purchase Agreements primarily serve the involved parties’ benefit and risk allocation. They do not fundamentally depict factual information about the Company but serve as a mechanism to delineate responsibilities within the transaction.

Exhibits such as the Purchase Agreement, Registration Rights Agreement, and Pre-Funded Warrant accompanying this filing provide essential insights into the terms and conditions of the transaction, offering investors a detailed understanding of the deal.

Additionally, on November 21, 2024, Agrify Corporation released a press statement confirming the execution of the Purchase Agreements, highlighting the essential aspects of the private placement transaction.

Investors in the private placement are anticipated to receive pre-funded warrants ensuring compliance with ownership limits of Agrify common stock as stipulated by securities regulations. Further details are expected to be disclosed in the upcoming SEC filings following demands for registration initiated by the investor majority.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Agrify’s 8K filing here.

About Agrify

Agrify Corporation offers hardware and software cultivation and extraction solutions for the cannabis and hemp industry in the United States. It offers vertical farming units and Agrify Insights Software-as-a-Service software; integrated grow racks and LED grow lights; and non-proprietary products designed, engineered, and manufactured by third parties, such as air cleaning systems and pesticide-free surface protection products.