Cannabis industry software company Agrify last week began trading on the Nasdaq under the “AGFY” symbol after completing a $54 million initial public offering. The IPO, which closed February 1, priced 5,400,000 common stock shares at $10 per share.
Maxim Group LLC and Roth Capital Partners acted as joint book-running managers for the offering.
Since the listing, Agrify has seen its shares as high as $15, and as low as $10.59.
“This is an incredible step forward to solidifying Agrify’s foothold in the indoor agriculture and tech space,” Agrify president and CEO Raymond Nobu Chang said in an interview with Green Market Report.
“We look forward to empowering a generation of modern growers to achieve better consistency and quality through the understanding that cultivation techniques must evolve to meet the market’s future needs.” – Nobu Chang to Green Market Report
The company does not cultivate, come in contact with, distribute or dispense cannabis or any cannabis derivatives that are currently prohibited under U.S. federal law. Its cultivation solutions can be used by indoor cannabis cultivators.
Agrify, based in Burlington, Massachusetts, reported 2019 net revenues of $4 million, which grew to $7.7 million for nine months ending September 30, 2020, according to Green Market Report, with net losses for those nine months of $8.5 million.
In their Securities and Exchange Commission filing outlined by Green Market Report, the company said they expect to “recognize revenue of approximately $40 million in 2021 and the rest gradually thereafter.”
“As of December 31, 2020,” the company said, “we have $105 million of carefully vetted potential sales opportunities (which we refer to as our qualified pipeline). Of this, $78 million of the qualified pipeline was generated through our company directly and $27 million through our Agrify-Valiant Joint-Venture.” The firm noted it planned to convert the pipeline into confirmed bookings over the next year.
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