What's Going On With Cannabis-Related Agrify Stock?

Agrify Corporation (NASDAQ:AGFY) shares are trading higher Thursday after the company announced it has entered into a sales agreement with a vertically-integrated, California-based cannabis operator.

The Details:

Agrify announced a multi-million dollar sales agreement with Ocean Deep/Golden Lake Business Park to purchase Agrify’s vertical farming units (VFUs) and PX30 Hydrocarbon Extraction Lab. Ocean Deep is expected to begin operation with an estimated 120 VFUs in 2024.

“We are very excited to announce this agreement for the sale of our first combined VFU and PX30 Hydrocarbon Extraction Lab facility in the state of California. We applaud our partner Ocean Deep/Golden Lake Business Park’s foresight for selecting Agrify’s technologies in the fiercely competitive California market. We believe our superior cultivation and extraction technologies will allow Ocean Deep to offer the highest quality and most consistent products to its customers,” said Raymond Chang, CEO of Agrify.

Agrify shares are moving on very heavy trading volume with more than 48 million shares already traded in the session. According to data from Benzinga Pro, the stock has a 100-day average trading volume of only 20,445 shares.

AGFY Price Action: According to Benzinga Pro, Agrify shares are up 63% at $1.92 at the time of publication.

Image: MasterTux from Pixabay

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