Shares of Agrify Corporation AGFY are soaring following the news of its takeover proposal.
Supplier of technologies and infrastructure for vertical farming Nature’s Miracle Holding Inc. NMHI has entered into a term sheet to acquire 100% of all outstanding shares of Agrify.
Each Agrify shareholder is expected to receive approximately 0.45 of a share of Nature’s Miracle for each share of Agrify common stock.
Based on fully diluted shares outstanding of 15.17 million and NMHI closing price of $0.93 as of April 16, 2024, AGFY’s stock is valued at $6.35 million or $0.4185 per share.
The acquisition is expected to serve as a revenue stream for Nature’s Miracle through Agrify’s SaaS and AI technology.
In exchange, Agrify will leverage Nature’s market position by providing advanced horticulture and cultivation lighting technologies that power vertical farming.
Following the merger, Raymond Chang, CEO and president of Agrify, will become president of Nature’s Miracle’s Agrify division and will join Nature’s Miracle’s board of directors.
Nature’s Miracle has agreed to purchase approximately $750,000 of horticultural LED lighting products from Agrify prior to the closing of the acquisition.
“We believe the indoor growing industry is in need of major consolidation, and we are pleased to have the opportunity to partner with one of the most impressive and experienced teams in the industry,” said Raymond Chang, CEO and president of Agrify.
The transaction is expected to complete within six months. NMHI held $221,760 in cash and cash equivalents as of December 31, 2023.
Price action: AGFY shares were trading 27.6% higher at $0.38 at last check on Wednesday.
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