Agrify today announced that its Board of Directors has approved a $20 million convertible secured note, of which $10M will be drawn upon at closing, from a wholly-owned subsidiary of Green Thumb Industries, a national cannabis consumer packaged goods company and owner of RISE Dispensaries.
Prior to this financing, the Green Thumb subsidiary acquired an ownership stake in Agrify through the purchase of common stock and warrants from its outgoing Chairman and CEO Raymond Chang and outgoing Director I-Tseng Jenny Chan. Agrify will continue to operate as an independent business and was not a participant in the transaction. Following the transaction and financing, Agrify retains the majority of its existing management team and all of its independent Directors.
Concurrent with the financing, Raymond Chang resigned as Chairman and CEO of Agrify and I-Tseng Jenny Chan stepped down from the Board. Following the acceptance of the resignations, the Agrify Board appointed Benjamin Kovler, Richard Drexler, and Armon Vakili to replace the outgoing Directors, bringing the total Board membership to six, the majority of whom are independent. In addition, Kovler was appointed to the roles of Agrify’s Chairman and Interim CEO following Chang’s resignation. Kovler, the Founder, Chairman and Chief Executive of Green Thumb, will retain his leadership and responsibilities at Green Thumb, where he is focused on creating value for Green Thumb shareholders. Drexler has more than 40 years’ experience in corporate leadership roles as well as serving on several public company boards and audit committees. Vakili currently serves as Vice President of Strategic Initiatives & Partnerships at Green Thumb and has over a decade of experience in corporate affairs, mergers and acquisitions, private equity and finance.
