Marc Beginin, CEO and founder of Prodigy Processing Solutions and a former CEO and largest shareholder of Precision Extraction Solutions attempted a hostile takeover of Agrify AGFY by acquiring 9.9% of the beneficial ownership of AGFY stock. The move was announced November 3, 2022, via a required Schedule 13D activist filing with the US Securities and Exchange Commision.
The 13D filing announced Marc Beginin’s intention to:
-
change control and management of Agrify, and
to merge Agrify with Prodigy Processing Solutions, the business entity currently owned and controlled by Marc Beginin. -
Beginin was the single largest shareholder of Agrify during his hostile takeover bid. He abandoned the bid upon Agrify issuing over 6 million shares of stock for sale, which diluted all the shareholders of Agrify by almost 70%.
Prodigy Processing Solutions is a new entrant to the ancillary cannabis space providing extraction technology and equipment solutions for cannabis processors worldwide and, upon launching, will be a direct competitor of Agrify Corp.
Precision, and its affiliate companies, were acquired by Agrify on October 1, 2021, for over $50 million in cash and stock. Beginin opposed the acquisition, and Agrify remarkably proceeded with the transaction without a noncompete agreement from the founder, CEO and largest shareholder of Precision.
In the 13D filing, he reserved his right to revisit the takeover of Agrify at a future date.
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Photo: Benzinga; Sources: courtesy of Stefan Balaz via Shutterstock and Peter Pike via Pixabay
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