Agrify Corp. has acquired Precision Extraction Solutions and Cascade Sciences from Sinclair Scientific for a base purchase price of $50 million – $30 million cash plus $20 million of Agrify common stock, which are both are subject to adjustments, escrows, and holdbacks as outlined in the definitive agreement.
The move expands Agrify’s core cultivation business by gaining immediate access to complementary and lucrative aspects of the extract vertical and supply chain. The global cannabis extract vertical is expected to grow to $24 billion by 2028 and could increase Agrify’s potential customer base by an estimated 50%, possibly doubling their annual revenue in 2021. Precision and Cascade are expected to generate approximately $40 million in revenue in 2021, nearly doubling Agrify’s previously announced full-year 2021 revenue guidance.
Agrify Corp. is a developer of highly advanced and proprietary precision hardware and software cultivation solutions for the indoor agriculture marketplace.
Precision and Cascade are two of the leading brands that provide equipment and solutions for post-processing, testing, and extraction for the cannabis and hemp industries. Both companies are at the cutting edge of technology and end-to-end service solutions for extraction and post-processing. Collectively, both companies have worked with more than 30 multistate operators.
Agrify will have new revenue streams and supply chain optimization via streamlined product warehousing, manufacturing, purchasing, and sourcing. The deal also gives Agrify showrooms, warehouses, offices, and manufacturing and production facilities in several states, including Oregon, California, Colorado, Michigan, Massachusetts, New Jersey, and Florida.
The science-backed solutions from Precision and Cascade provide facility and lab design, equipment technology, and extensive research and development capabilities. The acquisition allows Agrify to create the most comprehensive suite of solutions under one platform by expanding its offerings with the addition of innovative pre- and post-extraction and testing solutions.