Agrify is rapidly expanding its cannabis cultivation and extraction solutions – New cannabis companies


Exclusive interview with Agify CEO Raymond Chang

Agrify Corporation (NASDAQ: AGFY) provides growing solutions designed to give the cannabis industry consistency, quality and return on investment. CEO Raymond Chang last spoke to the company’s New Cannabis Ventures in June. Since then, the company has ended its third quarter with approximately $ 117 million in bookings, and looks to continue its strong growth through 2022. Chang has appeared to discuss Agrify’s recent directions on mergers and acquisitions, 2021 and what will follow for the company. Audio of the entire conversation is available at the end of this written summary.

Strengthening of the management team

With a view to further growth, Agrify has strengthened its management team with new talents. Thomas Massie joined the company as COO and President, and Tim Oakes as CFO. The two new members of the operational team were previously members of the board of directors, which made them familiar with Agrify. Having people who know the business and have a strong work history will prepare the business for the explosive growth to come, Chang said.

Agrify strives to become a complete end-to-end solution provider.

Extraction Acquisitions

This fall, Agrify acquired Precision Extraction Solutions and Cascade Sciences to add extraction to its service offerings, the backbone of cannabis 2.0 products, according to Chang. Agrify aims to be a complete end-to-end solution provider for its customers. These two agreements have closed about 60 to 70 percent of the company’s extraction gap, and the company will seek to close the extraction gap remaining in its portfolio.

Precision Extraction Solutions and Cascade Sciences have come up with intellectual property, the best products and management skills. Agrify predicts that the two companies will generate revenue of $ 40 million in 2021 on a combined basis. And that number is expected to increase by at least 50% in 2022.

No more mergers and acquisitions

With the aim of adding more extraction offerings to its portfolio, further mergers and acquisitions are likely in the future of Agrify. The company also plans to add drying and curing to its portfolio, along with downstream offerings such as product manufacturing and packaging.

When deciding to strike a deal, the Agrify team looks for the best players with strong intellectual property protection and management skills. Ultimately, any deal will have to be profitable.

Customers and market strategy

Agrify serves large MSOs. Recently, the company entered into an R&D relationship with Curaleaf. Once construction of the facility is complete, Agrify will contribute its vertical agricultural units (VFUs), which will play an important role in R&D projects, Chang said.

Agrify’s VFUs are an integral part of its portfolio of growth solutions.

In addition to MSOs, Agrify also targets small regional operators and social equity players. Its turnkey solutions (TTK) are optimal for small operators.

Agrify is primarily interested in new limited license markets which are in the early stages of their growth. States like New York, New Jersey, Michigan, Illinois, Florida, Arizona, Georgia and Pennsylvania are among the markets that attract the company.

TTK solution

In our previous interview, Chang discussed the company’s plans to commit up to $ 50 million in its TTK solutions. In its fourth quarter, the company added two more TTK partners, bringing the total to four. Agrify currently has a TTK pipeline of $ 200-300 million of opportunities. With so much interest in the TTK program, Agrify might consider investing more.

Agrify has a strong track record, but he is considering his options for future fundraising. The success of the TTK program has sparked interest from REITs and other asset-backed loan companies, Chang said. Agrify has the ability to explore debt at the enterprise level, as well as at the TTK project level.

2021 turnover

Agrify has announced an increase in its guidance for 2021 with its third quarter results. The company now expects revenue of $ 60 million to $ 62 million, from $ 48 million to $ 50 million. The company ended its third quarter with an order book of $ 117.5 million in reservations, and it expects reservations of more than $ 100 million in the fourth quarter. Chang predicts that the company’s fourth quarter will see strong momentum through 2022.

Strong momentum

With the integration of its recent acquisitions, Agrify now offers cultivation and extraction solutions, resulting in a larger share of the portfolio. The integration’s success should be reflected in the company’s fourth-quarter numbers, Chang said.

As Agrify enters 2022, the team will remain focused on scaling the business. This year, it has outsourced the production of its VFUs to third-party manufacturers to support this mission of scalability. The company has also integrated more third-party installation teams to speed up the installation process. Agrify is putting in place the necessary infrastructure to meet its growth over the next few years and beyond.

To find out more, visit the Agrify website website. Listen to the entire interview:

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Carrie Pallardy, a Chicago-based writer and editor, began her career in the healthcare industry and now writes, reviews and interviews subject matter experts in several industries. As a published writer, Carrie continues to tell fascinating and unknown stories to her network of readers. For more information, contact us.

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