Agrify today announced it has signed an agreement for and closed the sale of its cultivation business to CP Acquisitions, LLC, an entity affiliated with Raymond Chang, the company’s former chairman and CEO. The transaction involves the sale of the Agrify cultivation business and assets, the assumption of liabilities related to the cultivation business by CP, and the termination of two convertible notes held by CP totaling approximately $7 million.
On December 31, 2024, Agrify signed an asset purchase agreement for the transaction with CP and simultaneously closed the transaction. Under the deal, CP agreed to acquire all assets related to the cultivation portions of the Agrify business from the company, including but not limited to, the company’s vertical farming units, the related Agrify total-turnkey solution assets and Agrify Insights software solutions (collectively the cultivation business).
“We are pleased to complete the sale of Agrify’s cultivation business and to simplify our business. We believe focus drives excellence and this move allows us to focus on more attractive growth categories tied to THC demand. This includes hemp-derived THC Delta 9 (HD9) beverages and our amazing drinks like Señorita, the award-winning THC Margarita available in 9 states and online direct to consumers,” said Agrify Chairman and Interim CEO Ben Kovler. “Señorita, the country’s leading THC Margarita is an all-natural, low calorie, great tasting alcohol alternative that provides an elevated experience. In this Dry January, Señorita feels like an obvious choice for America. Selling the cultivation business allows Agrify to focus on the future, which we believe includes Más Señorita.”
“I am pleased to continue the cultivation business, and the separation of business segments will allow each party to better concentrate their efforts going forward,” said Raymond Chang.
