Agrify Acquires Precision Extraction Solutions And Cascade Sciences; Stock Jumps 25%
(RTTNews) - Shares of Agrify Corporation (AGFY) jumped nearly 25% in extended trading session on Monday after the company said it has acquired Precision Extraction Solutions and Cascade Sciences brands from Sinclair Scientific.
AGFY closed Monday's trading at $18.47, up $0.11 or 0.60%, on the Nasdaq. The stock further gained $4.53 or 24.53%, on the Nasdaq.
Agrify said it acquired Precision and Cascade with a base purchase price of $50 million, consisting of $30 million of cash and $20 million in stock. The total purchase price may be adjusted to up to $65 million based on the performance of the Cascade and Precision businesses for the fiscal year ending December 31, 2021.
Agrify expects the acquisition of Precision and Cascade bands to expand its core business beyond cultivation by gaining access to supply chain. Precision and Cascade expect to generate about $40 million in revenue in 2021 with positive EBITDA.
The acquisition is projected to nearly double Agrify's 2021 revenue and is immediately accretive with positive gross margins and BITDA contribution.
"We are thrilled to announce the acquisition of Precision and Cascade, two companies that share our strong commitment and passion for delivering leading-edge solutions and exceptional customer service to the cannabis and hemp industry," said Raymond Chang, CEO of Agrify.
