Agrify (AGFY) Enters Into Binding Letter of Intent For An Additional $3M Contract With Hannah Industries For Facility Build-Out And Installation of 179 Vertical Farming Units
February 19, 2021
Agrify Corporation (NasdaqCM: AGFY) (“Agrify” or the “Company”), a developer of highly advanced and proprietary precision hardware and software grow solutions for the indoor agriculture marketplace, today announced it has entered into a binding letter of intent, which sets forth the principal terms of a contract currently being negotiated with Hannah Industries (“Hannah”), a leading Tier 2 producer and distributor of cannabis in Washington State, for the design and build-out of an approximately 30,000 square foot facility. The contract will include facility build-out services in total of $3 million and annual SaaS revenue of approximately $285,000. Such payments will be financed by Agrify, are to be made monthly over a two-year period commencing upon the first successful harvest, and will reflect an APR of 25%. The agreement for this design and build-out will be in addition to the previously purchased 179 Vertical Farming Units (“VFUs”) and is part of Agrify’s turnkey solution to its customers. The work is expected to be completed by early Q4 2021, subject to entry into a definitive agreement.
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“We are especially proud to be selected by Hannah Industries, a leading producer and distributor in the State of Washington. Their decision to upgrade from the traditional grow methodology to Agrify’s integrated vertical farming solution is the strongest testimony of our joint belief that Agrify’s solution will help Hannah Industries to produce the highest quality cannabis flowers consistently. We’re thrilled to have been chosen again by Hannah for the facility design, construction, and installation of our proprietary and advanced grow solutions,” said Raymond Chang, Chief Executive Officer of Agrify. “Agrify VFUs and Agrify Insights software should also help Hannah realize increased levels of automation, control, transparency, and repeatability. We expect this will be a great win for our team, and we look forward to working with Hannah to successfully implement it.”
“The current market is very competitive, and consumers have lots of options. One of the most important things to our business is being able to deliver a consistent, high-quality supply of cannabis to our retail partners,” said Jason Whitney, Chief Executive Officer of Hannah. “The Agrify grow system and software allow us to have an extremely high level of control over the grow, helping us meet our customers’ needs. In addition, the information Agrify Insights software provides will allow our team to make real-time decisions on supply chain management based on feedback from our customers. This evolution in the industry is one of the reasons we are extremely pleased to be implementing the Agrify solution for our cultivation facility.”