Agrify Prevents Hostile Takeover By Diluting Its Stock By Almost 70%

Agrify Prevents Hostile Takeover By Diluting Its Stock By Almost 70%

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:

  1. change control and management of Agrify, and
    to merge Agrify with Prodigy Processing Solutions, the business entity currently owned and controlled by Marc Beginin.

  2. 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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Posted In: Marc BegininPrecision Extraction SolutionspremiumProdigy Processing SolutionsCannabisNewsPenny StocksMarkets

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