Vertically integrated cannabis company Agrify Corporation (NASDAQ:AGFY) confirmed Wednesday that it has completed its $9 million acquisition of PurePressure, a provider of solventless extraction and advanced ice water hash-processing equipment for the cannabis and hemp industries.
The news comes on the heels of the company’s definitive agreement for its largest Agrify Total Turn-Key Solution partnership to date with Gold Leaf Florida LLC.
The PurePressure Acquistion Higlights
The purchase price for PurePressure was $9 million, consisting of $4 million in cash and $5 million in unregistered shares of Agrify common stock, subject to adjustments as set forth in the definitive agreement.
There is also an additional earnout opportunity of up to $3 million if PurePressure achieves certain revenue milestones in 2022 and 2023.
With the acquisition, Agrify can now offer its customers premium solventless processing products and rosin presses to support any operation, big or small. The company also inherits PurePressure’s intellectual property, talent and stellar reputation for quality, reliability, precision, control and exceptional customer service.
PurePressure’s annual revenue for 2021 was approximately $10 million; the acquisition is expected to be accretive in early 2022.
“We are thrilled to be able to officially welcome PurePressure to the Agrify family,” Raymond Chang, chairman and CEO of Agrify stated. “PurePressure is the perfect complement to our extraction division, which has quickly become a core part of our business and our plans to accelerate our growth. Within a short amount of time, we have assembled the best extraction talent in the industry and what we believe is the most compelling, complete, and advanced product offerings in the extraction space, effectively doubling down on our assertion that superior extraction technology will play a critical role in producing high-quality medical and recreational consumer products consistently.”
Agrify noted that by combining PurePressure with Precision Extraction Solutions and Cascade Sciences – two of Agrify’s recent acquisitions – the company has formed the largest and the most powerful cannabis and hemp extraction solution provider in the world.
Agrify’s shares traded 0.36% lower at $11.10 per share during Wednesday’s pre-market session.
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