Image courtesy of Agrify
The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
Vertically integrated cannabis companies looking for a 1-stop shop for all of their cultivation and extraction needs might strongly consider partnering with Agrify Corp. AGFY.
The Billerica, Massachusetts-based company is attempting to lead the market by developing premium grow solutions for the indoor agriculture marketplace. The company uses data, science, and technology to help its customers be more efficient, productive, and intelligent about how they run their operations. Its cultivation solutions include vertical farming units, LED grow lights, and crop protection products.
Agrify recently acquired Precision Extraction Solutions and Cascade Sciences for approximately $50 million in cash and stock. Agrify hopes that the deal will enable it to expand its core business to include cutting-edge technologies and comprehensive solutions for cannabis and hemp extraction and post-processing.
“Precision and Cascade have stellar reputations and powerful leadership positions in their respective spaces, which is a perfect complement to our existing business and should allow us to leverage new competitive advantages and synergies in order to accelerate our growth plans,” Agrify CEO Raymond Chang said at the time of the acquisition.
The acquisition gives Agrify, a non-plant-touching business, direct access to the global cannabis extract vertical, which is expected to grow to $24 billion by 2028 and will increase the company’s potential customer base by 50% and nearly double its revenue for 2021, Chang said.
Chang also noted that the transaction gives Agrify the opportunity to work with more multistate operators (MSOs) such as Curaleaf Holdings Inc. CURA CURLF. Agrify and Curaleaf agreed in July to form a long-term vertical farming research and development partnership that is focused on evaluating the impact of certain environmental conditions created and controlled by Agrify’s vertical farming units.
Agrify’s fully integrated grow solutions are designed to help customers produce the highest quality products consistently and at scale. The company’s existing clients have experienced a number of successes including:
- Less than 0.67% variation in cannabinoids across 10 harvests
- Less than 0.02% variation in terpenes across 10 harvests for 2 different strains
- Average strain potency increases of 29%
- Yield increase of 6x per square foot compared to conventional systems
- Operational cost decrease of 25% to 40% per pound
Agrify’s vertical farming units work hand-in-hand with the company’s software platform, Agrify Insights, which lets facility owners, managers, and growers effortlessly plan, monitor, and optimize results from their cultivation operation for high quality, consistency, and yield. Captured data provides cultivators with increased visibility into what’s working and what’s not while variables like humidity, carbon dioxide (CO2), irrigation times, airflow, and temperature are closely monitored throughout every grow cycle. The system notifies users of any issues with tracked functions and metrics and recommends what can be done to achieve desired outcomes.
With Agrify’s recent acquisition, the company now has a presence in multiple states including California, Colorado, Massachusetts, Michigan, and Oregon. Agrify expects to further scale its nationwide network as it builds new relationships with MSOs and single-state operators.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.