Nature's Miracle, a provider of vertical farming technology and infrastructure, today announced it has entered into a term sheet to acquire 100% of all the outstanding shares of Agrify Corporation, a provider of cultivation and extraction solutions.
When closed, the strategic acquisition of Agrify is expected to bring a meaningful revenue stream for Nature's Miracle through Agrify's SaaS and AI technology which can be applied to Nature's Miracle's vertical farming business, while its market share in cannabis extraction continues to drive revenue growth. In return, Agrify will benefit from the expertise and operators that comprise the Nature's Miracle management team and its prominent market position providing advanced horticultural and cultivation lighting technologies powering agricultural vertical farming.
Upon closing of the merger, Raymond Chang, Chief Executive Officer and Chairman of the Board of Agrify, will assume the role as President of the Agrify division of Nature's Miracle and will join the board of Nature's Miracle. The transaction is expected to close within six months of this announcement, subject to completion of mutual due diligence, shareholder approval and customary closing conditions.
Pursuant to the term sheet with Agrify, Nature's Miracle agreed to purchase approximately $750,000 of horticultural LED lighting goods from Agrify prior to the closing of the acquisition.
"We believe that Agrify will not only provide meaningful revenue with their cannabis extraction business, but the combined business will benefit through efficiencies with the consolidation of our advanced lighting technology and their industry leading Software as a service ("SaaS") model and Vertical Farming Unit ("VFU") technology. We are especially intrigued by the AI learning capability of Agrify's SaaS and VFU system. We would like to thank Raymond and the entire Agrify team for building Agrify's innovative technology and we look forward to working in unison to continue to grow Nature's Miracle as an industry leader in the vertical farming agriculture business," said Nature's Miracle CEO James Li.
